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Aggregate planning strategies

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.

Aggregate planning strategies

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