A poor aggregate plan may result in a large amount of excess inventory and capacity,thereby raising costs.

Question

Quizplus · Accepted Answer

A poor aggregate plan can lead to overproduction, which can result in excess inventory and capacity. This can lead to increased storage and handling costs, as well as potential stock obsolescence. Additionally, excess capacity can result in underutilized resources, driving up costs per unit produced.

A Poor Aggregate Plan May Result in a Large Amount