The purpose of aggregate planning is to
A)Minimize the work force size
B)Maximize the production rate
C)Minimize the cost of meeting demand
D)Optimize the inventory level

Question

Quizplus · Accepted Answer

The purpose of aggregate planning is to minimize the cost of meeting demand. This involves balancing production capacity and demand while minimizing costs associated with inventory, overtime, and idle time. While maximizing production rate or optimizing inventory levels may be factors in achieving this goal, the primary focus is on cost reduction. Minimizing the work force size may be a secondary consideration but is not the main purpose of aggregate planning.

The Purpose of Aggregate Planning Is to