S&OP planning is also called Aggregate Planning.What is 'aggregate' about it?
A)Demand is aggregated into product lines or families.
B)Demand is forecasted roughly by aggregating opinions from experts instead of using a quantitative forecasting model.
C)Supply is aggregated into annual production at each location.
D)all of the above.

Question

Quizplus · Accepted Answer

S&OP planning, or Aggregate Planning, involves aggregating the demand from individual products into product lines or families. This allows for more effective planning and allocation of resources to ensure customer demand is met in a cost-effective manner. While forecasting methods may vary, the focus is on the aggregation of demand and supply data. Therefore, option A is the most accurate description of what is 'aggregate' about S&OP planning. Option B is not necessarily true, as quantitative forecasting models may still be used in the process. Option C is not a complete description of S&OP planning, as it does not account for the aggregation of demand data.

S&OP Planning Is Also Called Aggregate Planning