Discussion
Which one of the following is NOT a decision taken during the aggregate production planning stage?
Answer: A
Scheduling of machines is not an aggregate planning decision.
Aggregate production planning works at a medium-term horizon, typically 3 to 18 months, and in aggregate units for a whole product family. Its decisions are how much to produce in each period (the production rate), how large a workforce to commit, how much inventory to carry forward, and whether to use overtime or subcontracting.
Assigning particular jobs to particular machines is short-term detailed scheduling, done much later, after the master production schedule and material requirements plan are set. The other three options are exactly the variables aggregate planning trades off against each other.
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