What is aggregate planning and how long is the planning


What is aggregate planning and how long is the planning horizon? What demand and capacity manipulators do we use? A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used with regular output. Backorders are allowed, and they are charged at the rate of $8 per unit per month. Inventory holding costs are $1 per unit per month. Determine the cost of this plan if regular time cost is $2 per unit and beginning inventory is zero. Expected demand: 80,100,120,120,100,80

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Operation Management: What is aggregate planning and how long is the planning
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