aggregate planning


aggregate planning
An approach to planning that enables overall output levels and the appropriate resource input mix to be set for related groups of products over the near to medium term. Thus the aggregate plan for a car factory would consider the total number of units produced per month, but would not be concerned with the scheduling of individual models, colours, standards of finish, engine sizes, etc. It would be concerned with the labour and machine hours available in a given period but not with what each machine would be doing at a particular time. Aggregate planning assumes that the product-service mix remains stable over the period of the plan and that the capacity remains fixed, i. e. that problems cannot be solved by bringing new plant on stream within the timescale of the plan. Aggregate planning may also seek to influence demand through such variables as price, advertising, and the product mix.

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • Aggregate planning — is an operational activity which does an aggregate plan for the production process, in advance of 2 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total… …   Wikipedia

  • aggregate planning — UK US noun [U] PRODUCTION ► a method of planning the production of the right amount of a product, at the right time, at the lowest cost, using available equipment and workers: »Aggregate planning should minimize the effects of shortsighted, day… …   Financial and business terms

  • Aggregate Industries — Type Private Industry Building materials Founded 1858 Headquarters Bardon, UK …   Wikipedia

  • Aggregate Capacity Management — The process of planning and managing the overall capacity of an organization s resources. Aggregate capacity management aims to balance capacity and demand in a cost effective manner. It is generally medium term in nature, as opposed to day to… …   Investment dictionary

  • economic planning — Use of government to make economic decisions with respect to the use of resources. In communist countries with a state planning apparatus, detailed and rigid planning results in a command economy; land, capital, and the means of production are… …   Universalium

  • Emergency Planning and Community Right-to-Know Act — The Emergency Planning and Community Right to Know Act of 1986 is a United States federal law passed by the 99th United States Congress located at Title 40, Chapter 116 of the U.S. Code, concerned with emergency response preparedness.On October… …   Wikipedia

  • Associate In Research And Planning - ARP — A professional certification for those who have completed the educational program on life and health insurance research and planning. The Associate In Research and Planning certification is awarded by the Insurance Institute of America. It… …   Investment dictionary

  • chase demand strategy — variable output plan An approach to aggregate planning that attempts to match supply and output with fluctuating demand. Depending on the product or service involved, the approach can incur costs by the ineffective use of capacity at periods of… …   Big dictionary of business and management

  • level output strategy — An approach to aggregate planning that aims to regulate production at a constant level, regardless of fluctuation in demand. It involves storing the product in times of low demand and is not therefore an option available to the providers of… …   Big dictionary of business and management

  • schedule — 1) A plan of activities that uses the resources made available by aggregate planning and allocates them to individual jobs, activities, or customers over a particular period. A schedule shows what has to be done, when, by whom, and with what… …   Big dictionary of business and management