As capacity utilization increases,
A)it becomes less important to perform aggregate planning.
B)it becomes more important to perform aggregate planning.
C)it does not affect the importance of performing aggregate planning.
D)it lessens the importance of aggregate planning.

Question

Quizplus · Accepted Answer

As capacity utilization increases, the importance of aggregate planning also increases. This is because higher capacity utilization often leads to inefficiencies, such as bottlenecks and higher costs of labor and materials. Effective aggregate planning can help a company better align its resources with demand, optimize production processes, and reduce costs. Therefore, it becomes more important to perform aggregate planning as capacity utilization increases.

As Capacity Utilization Increases