Respuesta :
The four relevant costs related to the aggregate production planning involves:
- inventory holding costs,
- Regular production cost
- Overtime cost
- Backorder/lost sales cost.
What is aggregate planning?
Aggregate planning is a method for creating a comprehensive manufacturing plan that ensures continuous production at a facility. Aggregate production planning is typically applied over a three to eighteen-month period. It is the activity of matching output supply with demand over a medium time span using information derived from inventory levels.
This ultimately implies that aggregate planning is a strategic technique used by organizations to make an aggregate plan for their manufacturing (production) process ahead of time, in order to have an idea of the level of goods to be produced and what resources are required so that the total cost of production is kept to a bare minimum.
Production and inventory costs are the two major cost categories required as inputs for aggregate planning. Production costs include regular and overtime labor costs, costs of subcontracting production, costs of changing capacity by hiring or laying off workers, and costs of increasing or decreasing machine capacity.
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