Aggregate Planning Strategies A Comparison

The managerial issues that affect the choice of the aggregate planning strategy are the following  

There is no uniform recommendation that one strategy is better than the other. The optimal strategy has to be tailored to each company and the prevailing environment. 

Union contracts and/or company policies may constrain the choice of a particular strategy. 

Even though the optimization models provide an optimal strategy based on all relevant costs, it has to be balanced with managerial judgment and experience before implementation. 

As we discussed earlier, aggregate production planning is a tactical decision in supply chain management. Production scheduling is an operational decision. It is important to understand the key differences between the two, with respect to the time horizon and the level of detail in the production plan. 

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