The Role of Aggregate Planning in a Supply Chain

The aggregate planner s main objective is to identify the following operational parameters over the specified time horizon  

Production rate the number of units to be completed per unit time (such as per week or per month) 

Workforce the number of workers or units of labor capacity required Overtime the amount of overtime production planned 

Machine capacity level the number of units of machine capacity needed for production Subcontracting the subcontracted capacity required over the planning horizon Backlog demand not satisfied in the period in which it arises, but is carried over to future periods 

Inventory on hand the planned inventory carried over the various periods in the planning horizon 

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