Question

Why aggregate Capacity management is important? ( I need the answer to be in details not simple answer)

Answer 1

Aggregate Capacity Management helps to plan and manage the overall capacity of the resources of the organization as it helps in providing the best results in terms of production, sales, and gains. It helps the company to manage the demand and supply factors in a cost-efficient manner. It helps the company keep a balance between the cost of production and the product's demand. The managers calculate it regularly, and it is far better than managing the capacity daily. The strategy helps the company to adopt the best measures to improve the condition of the enterprise. The first advantage of the strategy is that it appropriately allocated the resources. It helps the company manage the scarce resources because it is the company's responsibility to manage all the functions without providing any harm to the society or environment. The se one advantage is that it helps to mitigate the risks. The strategy helps the companies to anticipate the risks well in advance so that the company can take necessary action to correct the wrongs that the company did.

Further, the system also prevents any biases because it helps the company to make appropriate decisions. Moreover, the system involves the whole firm and not just a few executive members. The other advantage is that it prevents any workforce uncertainty because it helps the company to anticipate the number of employees well in advance. Hence, aggregate capacity management is one of the most effective systems.