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Essay / Analysis of the sales and operations planning process - 883
By aggregate we mean at the level of the main product groups. Over time, we must ensure that we have sufficient total capacity. As demand is often very dynamic, it is important to monitor expected needs in the future. When forecasting or planning for such a distant future, it is difficult to know exactly how much of a particular product is needed, but it is necessary to be able to know how a larger group of similar products should sell. Since we have sufficient overall capacity, our individual product schedule, operating within overall capacity constraints, can handle the daily and weekly release of individual product orders to meet short-term needs.