Aggregate planning is capacity planning that typically covers a time horizon of one to three months.Group startsTrue or False

The statement, "Aggregate planning is capacity planning that typically covers a time horizon of one to three months," is generally considered True.

Explanation

Aggregate planning is a crucial process in operations management that aims to balance supply and demand while minimizing costs. It typically involves developing, analyzing, and maintaining preliminary and complete operational plans. This planning process usually spans a time horizon of one to three months, which allows businesses to adjust their production levels, staffing requirements, inventory management, and other resources effectively.

By focusing on this short-term planning window, companies can respond to fluctuating market demands and manage their operational capacities efficiently. This ensures that they can meet customer requirements while minimizing excess inventory and maximizing the use of their resources. In summary, aggregate planning is indeed a capacity planning activity that falls within the specified time horizon.