A manager should perform sensitivity analysis on the inputs into an aggregate plan to choose the best solution for the range of possibilities that could occur.

Question

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Sensitivity analysis is an essential step in the decision-making process for an aggregate plan. It helps managers to evaluate multiple scenarios and choose the best solution for various possibilities that could occur in the future. Sensitivity analysis helps managers to understand the impact of different factors, such as changes in production capacities or demand patterns, on the overall effectiveness of the plan.

A Manager Should Perform Sensitivity Analysis on the Inputs into an Aggregate