Explain any two process technologies for materials.  b. Discuss any three factors that will help to determine the type of production process used.  c. Distinguish between design capacity and effective capacity. Provide a brief example.  d. Why is the capacity decision important?

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Aggregate Planning Strategies

On the basis of the demand forecast, an organization can complete its business plans. When the business plans are complete, an organization can work backward from the completed total sales to the raw materials needed. Thus, annual and quarterly plans are divided into labor, raw material, working capital, and other demands for a medium-term period (6 months to 18 months). This process of evaluating moderate production requirements is known as aggregate planning.