Generally, the goal of aggregate planning is to satisfy anticipated demand while balancing employment and reducing inventory levels over the planning period.
Aggregate planning is a marketing activity that creates a manufacturing process plan in advance of 6 to 18 months to provide management a general sense of how much inventory and other resources will need to be purchased and when, hence lowering the organization's overall operating costs during that time. The amount of outsourcing, subcontracting, overtime work, hiring and firing personnel for each period, and the quantity of inventory to be kept on hand and backlogged for each period are all determined. These actions are all carried out in accordance with the company's ethics, policies, and long-term commitment to the local community, society, and operating nation.
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