Exam CSCP topic 1 question 622 discussion

Correct answer is A

D) Achieve cyclical employment levels - due to Level Production strategy of Aggregate Planning Examples of Aggregate Planning Strategies: Level Production: Maintaining a constant workforce and production rate, even if demand fluctuates, to avoid hiring and firing costs. Chase Demand: Adjusting production levels to match demand fluctuations directly. Hybrid Approach: Combining elements of both level and chase strategies to balance costs and customer service.

**Explanation:** The **primary objective of aggregate planning** is to balance demand and supply over a medium-term horizon (typically 3–18 months) while meeting organizational goals. A key focus is establishing a **service-level target**, ensuring customer demand is met without overburdening resources. This involves: - Aligning production capacity with demand forecasts. - Minimizing costs (e.g., inventory, labor, overtime). - Maintaining customer satisfaction through consistent service levels.

aggregate planning is to balance supply and demand in a way that meets customer service targets while minimizing costs.

Improve forecast accuracy

The primary objective of aggregate planning in operations management is to reduce the cash-to-cash cycle time