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Aggregate planning involves intermediate capacity planning for services over 2-12 months. It accounts for projected customer demand, equipment capacities, and labor capacities. For services, aggregate planning strategies must consider that most services cannot be inventoried, demand is difficult to predict and peaks during short periods, and capacity is also hard to predict as it depends on the specific transactions. The aggregate planning process is different for services, as capacity must be provided at the appropriate geographic location and time, and labor is usually the most constraining resource due to the flexibility needed around hiring temporary or part-time workers and using overtime.








