Asked by Quinn Duncan on Jun 04, 2024
Verified
The goal of aggregate planning is to
A) maximize the amount of inventory.
B) satisfy customers in a way that minimizes production.
C) satisfy demand in a way that maximizes profit.
D) maximize the amount of product shipped.
Maximize Profit
A strategy aimed at making the highest possible profit by optimizing sales, pricing, and cost efficiency.
Satisfy Demand
The process of meeting customers' needs and desires for products or services through successful production and distribution strategies.
- Gain an understanding of the essential principles and objectives underlying aggregate planning.
- Understand the significance of maintaining equilibrium among production, inventory, and capacity levels for optimal profit maximization.
Verified Answer
AR
aliah rahimJun 05, 2024
Final Answer :
C
Explanation :
The goal of aggregate planning is to satisfy demand in a way that maximizes profit. This involves determining the production levels and inventory requirements necessary to meet expected demand while minimizing costs and maximizing revenue. The focus is on balancing supply and demand in a way that is financially beneficial for the company. Maximizing inventory or product shipped may not necessarily lead to maximum profitability.
Learning Objectives
- Gain an understanding of the essential principles and objectives underlying aggregate planning.
- Understand the significance of maintaining equilibrium among production, inventory, and capacity levels for optimal profit maximization.
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