What is the development of a long-term output and resource plan known as?

The development of a long-term output and resource plan is referred to as aggregate planning. This process involves determining the optimal levels of production to meet anticipated demand over a specific period, typically spanning from several months to a few years.

Aggregate planning encompasses the decisions regarding the quantity of products to be produced, the necessary resources to produce them (including labor, materials, and equipment), and the overall strategy to align production with market demand. It focuses on balancing supply and demand by adjusting production rates, inventory levels, and workforce size to minimize costs while maximizing output efficiency.

By emphasizing long-term planning, aggregate planning lays the groundwork for more detailed processes, such as production scheduling and capacity management, which focus on operational aspects in shorter time frames. This strategic approach ensures that an organization can meet customer needs effectively while maintaining efficient resource usage over time.