Aggregate planning strategies are manufacturing strategies for meeting customer demand by setting production levels, inventory levels, and backlog. They can include the following methods:
● Chase methods match the production rate to the order rate by adjusting capacity. A mix of permanent and temporary workers typically are used with this strategy.
● Level methods maintain a stable capacity with a constant output rate. Shortages and surpluses are absorbed by fluctuating inxentory lexels, order backlogs, and lost sales.
● Hybrid methods combine aspects of both chase and level methods. Overtime, undertime, and flexible work schedules often are used with hybrid methods.