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What is the time horizon in an aggregate plan? How does it determine the correct plan to choose?
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https://brainmass.com/business/business-management/what-is-the-time-horizon-in-an-aggregate-plan-how-does-it-285926
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Many factors affect the selection of an appropriate time horizon. Perhaps, the most important is what the firm intends to plan during that time period. An aggregate plan implies a period of up to 18 months wherein the firm takes its forecast and plans production using inventory, work force size, overtime and under time, subcontracting, and backlogging orders to achieve a reasonable schedule at reasonable costs. A very stable firm in a very stable environment with a very stable demand really doesn’t …
