Aggregate planning is the crucial process of balancing mid-term demand forecasts with available supply and resources.
This strategic planning occurs at an aggregated level, focusing on overall production volume, workforce size, inventory levels, and production rates, rather than individual product lines (SKUs).
Its primary objective is to minimize total operational costs—including inventory holding, labor adjustments, and overtime—while effectively meeting fluctuating market demand. Aggregate planning is a fundamental discipline in supply chain management, essential for optimizing financial and operational stability across complex manufacturing enterprises.