Question

The output of an aggregate plan is

• A. Bill of material
• B. Demand forecast
• C. Overtime
• D. Total cost

Answer 1

Answer:

B. Demand forecast

Aggregate planning is crucial for optimizing resource utilization and balancing long-term strategic planning with short-term production success. The output of an aggregate plan is a demand forecast, which serves as a platform for managing capacity and demand planning. The level strategy maintains a steady production rate and workforce level, while the chase strategy dynamically matches demand with production. The hybrid strategy balances between the two