Operations
Manager
APP Overview
Aggregate
production planning (APP)
 Aggregate
production planning is the process of determining (1) the timing
and quantity of production, (2) the level of inventories, (3) the
number of workers employed, and (4) the amount of overtime used
for up to 12 months ahead. Production and inventories are stated
in overall or aggregate quantities, such as number of automobiles
without regard to model or color or number of pairs of shoes without
regard to style or size. Cost minimization is rarely the only
goal in aggregate planning. Other considerations, such as stability
of the workforce and maintenance of adequate inventory levels, are
usually just as important.
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