What is aggregate planning?

Aggregate planning can also be defined as "total
planning", as the meaning of the word "aggregate" suggests. It is the process by which a
group of people, or a focused group, makes a list of needs and priorities within the
sub-groups of an organization. This group then decides what are the goals and procedures
for each of the sub-groups in order to accomplish the organizational
mission.

Basically, aggregate planning is the systematic
planning of the products, services, prices, and production of goods that will be
required for supply and demand. If you plan ahead of time, you will have a wider view of
what the organization needs in order to always be ready to accommodate to the
fluctuations of the economy, and always maintain a decent-enough supply of goods to keep
the organization flowing.

In reality, aggregate planning is
optimal for just about every field, although the term is mostly associated to the field
of business. However, it is safe to argue that most organizations do a similar kind of
planning each time committees review the goals, mission, and vision of the organization
and then produce a plan of action that goes in accordance to what needs to be
accomplished.