Question

How to manage demand fluctuations through aggregate capacity management? ( I need the answer in details)

Answer 1

Aggregate capacity management
It is describes as a process which is used for planning and for managing the capacity of the organization or business resources. It helps to balance the organization capacity and the demand and also helps to reduce costs for the organization.

Aggregate capacity management helps to manage the demand fluctuations as follows-

It measure the aggregate demand and the capacity levels in planning period. It helps in maintaining right amount of the balance in between demand and the supply.
This is the first step by which the managers forecast the demand.

The next step is taken in finding alternative capacity plans that can be used in case of demand fluctuations. This is done to overcome demand fluctuation which can arise in the near future.

The final step is to choose the best and most appropriate capacity plan which can be used in unforeseen circumstance.