Aggregate Production Planning

Aggregate Production Planning (APP) is the process companies use to determine the optimal production levels and workforce size over a medium-term period, typically spanning several months. It involves balancing forecasted demand with production capacity, inventory levels, and workforce availability to meet customer needs efficiently. APP helps companies avoid shortages or excess inventory by planning production schedules, labor, and resources effectively. Essentially, it aligns a company's manufacturing plans with market demand, ensuring smooth operations while minimizing costs and resource use.