Question

Would the application of a Just-In-Time production system affect how aggregate planning is conducted? Why? How?

Would the application of a Just-In-Time production system affect how aggregate planning is conducted? Why? How?

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Answer #1

Aggregate planning involves preplanned strategies of supply chain to reduce time and increase efficiency of the organisation. When we apply just in time system , th einventory will be maintained as per requirement only and this will make the strategic planning process tough because we have to extimate the demand perfectly and any flaw in the plan results in halting of the whole supply chain because of low inventory. While just in time make aggragate planning much accurate, it also makes it tough to prepare.

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