What does the term 'aggregate planning' refer to?

The term 'aggregate planning' specifically refers to the process of developing, analyzing, and maintaining plans for overall operations within an organization. This involves aligning production capacity with fluctuating demand over a specific time frame, typically ranging from a few months to a year.

Effective aggregate planning helps organizations determine how many products to produce, which resources to allocate, and how to manage workforce and inventory levels to meet customer demands efficiently. By focusing on overall operations rather than just raw materials, individual tasks, or marketing strategies, aggregate planning ensures that all aspects of production are coordinated to support organizational goals. This holistic approach is vital for optimizing resources and costs while meeting service level expectations.