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What is Aggregate Planning Strategies Explained about?
Aggregate planning involves planning production over an intermediate period of 3 months to 1 year using logical units such as machine hours or production dollars. The manager must decide on strategies such as inventory levels, workforce, and outsourcing to match production with fluctuating demand while seeking to minimize costs. Pure strategies use one variable at a time, while combined strategies use more than one, such as overtime and inventory.
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