Verizon LTE 526 PM 69 SolutionThe application of determinis

Solution

The application of deterministic methods such as linear programming will be encouraged by the highly accurate forecast and it will help in allowing the development of near-optimal plans. It is quite clear that if the uncertainty is reduced, it will help in improving the accuracy of any production planning method. The better our forecasts are, the better our planning can be, and the lower our costs will be. However, aggregate planning is looking at the total demand across several products, our estimate of the total sales for a family of products is generally more accurate than our estimates for individual items.