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Guru Gobind Singh Indraprastha University

Address:Guru Gobind Singh Indraprastha University
Kashmere Gate Delhi – 110403
Website: http://ggsipu.nic.in/

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Disha Institute of Advanced Studies DIAS

Address:Disha Institute of Advanced Studies (DIAS an Institute for MBA & MCA)
DIAS Campus, C-9/31, Sector-7, Rohini, Opp. Metro Pillar No : 402. F-24/34, Disha Building, Sector-3, Opp. Avantika Bus Stand, Rohini
Phone:011 – 43527900
Website: http://www.dias.co.in/

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Delhi Institute of Technology and Management

Address: Delhi Institute of Technology and Management
Gnnaur-Sonipat Haryana, National Highway, NH-1, NCR Delhi
Phone:0130-3200053, 3200087, 09215215184 / 85 / 86
Fax:0130-2460399, 011-27243059
Email: info@ditmcollege.com
Website: http://www.ditmcollege.com

Delhi Admission Center :
46, Nishant Kunj, Pitampura,
Opp. Metro Piller No.-337, Delhi-110088
Contact No. : 011-45282868-58, 09717550577 / 88

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Global Business School

Address:Global Business School
500 Functional Industrial Estate, Patparganj
Phone:011-22157240, 011-22157263, 011-22157198
Fax:011-22157284
Email: coordinator@gbs-india.org
Website: http://www.gbs-india.org/

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What are the Characteristics of the Aggregate Planning?

1. A planning horizon is considered from about 3 to 18 months, with the periodic updating.
2. Aggregate product demand, stated in the common terms is observed.
3. Aggregate resource quantities, stated in the common terms are observed.
4. Influence both the supply and the demand by adjusting the production rates, workforce levels, the inventory levels etc., but the facilities cannot be expanded.

Aggregate planning strategies

1. Active strategy –
• Tries to control the fluctuations, which are in the demand by focusing on the demand management.
• Use the pricing strategies.
• Make use of the methods like the advertising and the promotion.
• Do not meet demand.
• Develop counter – cyclical products.
• Request the customers to back order or advance order.

2. Passive strategy –
• Also called as the reactive strategy.
• Tries to control the fluctuations in demand by focusing on the supply and capacity management.
• Vary size work force by hiring or lay – offs.
• Vary utilization of the labour and also of the equipment through the overtime or the idle time.
• Build or draw from the inventory.
• Sub – contract production.
• Negotiate co – operative arrangements with the other firms.
• Allow the back – logs, back orders and/or stock outs.

3. Mixed strategy –
• Joins or combines the elements of both of the active strategy as well as the passive or the reactive strategy.
• Firms will usually use some combination of the two.

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