Aggregate Production Planning:

This unit provides the definition and physical significance of aggregate production planning. Further, this is illustrated that how the internal and external factors constitute the production planning environment. Brief descriptions of production planning strategies along the relevant costs are provided. These relevant costs consist of basic production costs, costs related with changes in the production rate, inventory holding costs and backordering costs. Further, two aggregate production planning techniques cut-and-try method and mathematical technique are discussed. Afterwards techniques elaborate the way by which production planning problems may be solved through linear programming by using transportation matrix. Last section gives a brief description of providing capacity for production planning.