Introduction Aggregate planning involves several basic competing objectives. Make frequent and large changes in size of labor force:a chase strategy to react quickly to anticipated changes in demand,cost effective,but a poor long-term strategy; Retain a stable workforce:results in larger buildups of inventory during period of low demand; Develop a production plan for a firm to maximize profit over the planning horizon subject to constraints on capacity. AP methodology is designed to translate demand forecast into blueprint for planning staffing and production level for a firm over a predetermined planning horizon;Introduction • Aggregate planning involves several basic competing objectives.  Make frequent and large changes in size of labor force: a chase strategy to react quickly to anticipated changes in demand, cost effective, but a poor long-term strategy;  Retain a stable workforce: results in larger buildups of inventory during period of low demand ;  Develop a production plan for a firm to maximize profit over the planning horizon subject to constraints on capacity. • AP methodology is designed to translate demand forecast into blueprint for planning staffing and production level for a firm over a predetermined planning horizon;