
221
18
Manpower Planning
Aggregate planning addresses the problem of deciding how many employees the rm should retain
or the quantity and the mix of products to be produced. Some rms utilize aggregate planning to
control costs within the company. To determine proper planning, a rm must evaluate how respon-
sive it can be to anticipated changes in the demand. The aggregate planning methodology is based
on the assumption that demand is deterministic, which means that the demand is known in advance.
Aggregate planning involves competing objectives. One objective is to react quickly to the antici-
pated changes in demand while another is maintain ...