What is a key goal of aggregate planning?

A key goal of aggregate planning is to specify optimal demand. Aggregate planning is essentially about aligning production capabilities with anticipated demand over a specific period, typically ranging from a few months to a year. This process involves forecasting future demand to ensure that the company can meet its customers' needs without overproducing or underproducing. By accurately specifying optimal demand, businesses can effectively manage their inventory levels, workforce allocation, and production schedules. This strategic approach helps in maintaining a balance between supply and demand, ultimately leading to better service levels and customer satisfaction.

While maximizing workforce efficiency, reducing production costs, and managing supplier relationships are all important aspects of overall supply chain management, they are not the primary objectives of aggregate planning. Instead, those aspects can be influenced by the decisions made during the aggregate planning process but do not define its core goal.