Which type of planning evaluates the aggregate cost of inventory?

The correct answer is production planning. This type of planning is essential for determining how much inventory is needed to meet production goals while balancing costs. Production planning takes into consideration the overall production capacity, schedules, and resource allocation to optimize manufacturing processes. By evaluating the aggregate cost of inventory, production planning helps organizations effectively manage their stock levels to minimize excess inventory and associated holding costs, as well as ensure that there is enough inventory available to meet production demands.

Other types of planning mentioned, such as sales planning, capacity planning, and material planning, focus on different aspects. Sales planning is primarily concerned with forecasting customer demand and setting sales targets. Capacity planning assesses the production capacity available to meet changing demands but does not specifically evaluate inventory costs. Material planning deals with ensuring that the necessary materials are available for production but is not directly focused on the aggregate cost of inventory.