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How Does Aggregate Planning in Services Differ from Aggregate Planning

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Essay

How does aggregate planning in services differ from aggregate planning in manufacturing?

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Definitions:

Direct Materials

The raw materials that are directly traceable to the production of a specific product.

Indirect Labor

Costs associated with employees who assist in the production process but do not directly work on products, such as supervisors and maintenance staff.

Direct Materials Used

The raw materials directly used in the production of goods, traceable to the end product.

Direct Labor

Labor provided by employees who are directly involved in the production of goods or the delivery of services, forming an essential part of the production process.

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