Asked by Hamish Harries on Jun 05, 2024
Verified
Aggregate planning is a process by which a company determines levels of capacity,production,subcontracting,inventory,stockouts,and even pricing over a specified time horizon.
Capacity
The maximum number of goods a company can produce or the amount of work it can perform in a given time period, under current conditions.
Production
The process of creating goods and services through the combination of labor, materials, and machinery.
Subcontracting
The practice of assigning or outsourcing part of the obligations and tasks of a contract to another party, often used to leverage specialized skills or cost advantages.
- Realize the importance of equalizing the scales of production, inventory, and capacity to achieve the highest possible profit.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
True
Explanation :
This statement accurately describes the process of aggregate planning.
Learning Objectives
- Realize the importance of equalizing the scales of production, inventory, and capacity to achieve the highest possible profit.