At my place of work, aggregated planning is viewed as an approach to business planning that takes a long-term perspective and considers the company as a whole rather than as a selection of separate parts. An aggregated planning leader thinks about the future in 12-18 months and analyzes all departments in the company, rather than focusing on specific models or divisions. It is believed that this approach can reduce costs and make the company work more efficiently.
Aggregated planning strategists begin by developing forecasts of future supply and demand. They are coordinated to manage the company’s products. A company can control the demand by adjusting prices and using other tactics to increase or decrease demand during a given period. To ensure that the supply meets the needs of the demand, deliveries are ordered on time, and the company is tasked with ordering staff to get the best prices when choosing products. Negotiating ahead of time can provide opportunities such as access to discounts and other special benefits.
Operating expenses are another factor that is factored into the overall planning strategy. These include staff costs, handling overheads, and other costs associated with maintaining the facility. Keeping these costs low through strategic planning can generate more revenue. Simple actions such as changing work shifts can reduce energy consumption during peak hours, allowing an organization to operate at a lower cost.
I find this type of planning to be effective. For aggregated planning purposes, it is often convenient to view production in terms of work or machine time over a given period or productivity (number of elements per period) rather than focusing on each component. This approach makes it possible to make general decisions on using production resources without touching on specific production requirements for each product or service (Jamalnia et al., 2019). Combining different products and services into common groups makes it easier to get a common unit of aggregated planning.
Reference
Jamalnia, A., Yang, J. B., Feili, A., Xu, D. L., & Jamali, G. (2019). Aggregate production planning under uncertainty: a comprehensive literature survey and future research directions. The International Journal of Advanced Manufacturing Technology, 102(1), 159-181.