Concept explainers
Interpretation: Whether aggregate planning is important or material requirement planning is important; the one that is more important is to be determined.
Concept Introduction: Aggregate planning is a marketing process in which production of output is planned in advance for some months to give an idea to management regarding procurement of goods.
Materials Requirement Planning is a process in which planning is made for the requirement of raw material required for manufacturing of finished product.
Explanation of Solution
Aggregate planning is more important than material requirement planning. This is because aggregate planning establishes plan for combined production, workforce and inventory level for the efficient production process.
As material requirement planning, is the stage of the aggregate planning, companies should give preference to the aggregate planning.
The material requirement planning is a detailed table of assembly and production of materials. However, aggregate planning plans for the whole production planning.
Aggregate planning is more important because it plans the order. It is the systematic representation of production capacity in order to meet the demand of their customers.
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Chapter 11 Solutions
Practical Operations Management
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