If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand.This decision would most likely be made at which planning level?
A)Aggregate planning - Level 1
B)Disaggregation - Level 2
C)Execution - Level 3
D)Capacity requirements planning

Question

Quizplus · Accepted Answer

Aggregate planning is a high-level production planning process that determines the desired overall level of output for the organization. If forecast demand exceeds the total factory or supply capacity, managers can identify this issue in the aggregate planning process and make decisions about how to address it, including the decision to not meet forecast demand. Disaggregation and execution are more detailed planning levels that focus on specific operational details, while capacity requirements planning is a subset of aggregate planning focused specifically on determining capacity constraints.

If Forecast Demand Exceeds the Total Factory or Supply Capacity