Aggregate planning:
A) is not driven by demand forecasts.
B) includes detailed staff schedules.
C) helps in defining budget allocations and resource requirements.
D) does not translate forecast into production plans.

Question

Quizplus · Accepted Answer

Aggregate planning is a process that helps organizations in defining budget allocations and resource requirements based on the demand forecasts. It aims to balance the production capacity with the demand to minimize cost and maximize efficiency. Detailed staff schedules are not included in the aggregate planning process, and the forecast is translated into production plans. Therefore, options A, B, and D are incorrect. Option C is the right choice, as it aligns with the primary objective of aggregate planning.

Aggregate Planning