In aggregate planning, one of the adjustable elements of capacity is the extent of subcontracting.

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Subcontracting is a viable option for businesses to adjust their capacity levels during the aggregate planning phase. With subcontracting, a business works with another company to produce some or all of its products, thus increasing its overall production capacity without necessarily increasing its fixed costs. As such, subcontracting is an adjustable element of capacity during aggregate planning.

In Aggregate Planning, One of the Adjustable Elements of Capacity