Final answer:
An aggregate plan in business outlines production, inventory, and workforce levels for a specified time period, to meet demand while minimizing costs.
Step-by-step explanation:
In the context of business, an aggregate plan refers to a plan that outlines the production, inventory, and workforce levels for a specified time period. It serves as a strategic tool to meet customer demand while minimizing costs and maximizing efficiency.
For example, if a company produces smartphones, they may create an aggregate plan that determines the number of smartphones to produce each month based on anticipated demand. This plan will consider factors such as manufacturing capacity, inventory levels, and workforce availability.
The period of the aggregate plan can vary based on the specific needs of the business, but it is typically created for a span of three to eighteen months.