Chapter 19: Sales & Opeations Planning

Question 1

What does the sales and operations planning process consist of?

Answer 1

A series of meeting that occur at aggregate (product family) and individual product level

Question 2

What is aggregate operations planing?

Answer 2

Specifies optimal combination of
1. Production rate
2. Workforce level
3. Inventory on hand

Question 3

What are the relevant costs to sales and operations planning?

Answer 3

~ basic production costs
~ costs associated with changes in the production rate
~ inventory holding costs
~ back order costs

Question 4

What is the chase strategy?

Answer 4

~ matches the production rate by hiring and laying off employees

~ must have a pool of easily trained applicants to draw on

Question 5

What is stable workforce - variable work hours strategy?

Answer 5

To vary the # of hours worked through flexible work schedules or overtime

Question 6

What is level strategy?

Answer 6

Demand changes are absorbed by fluctuating inventory levels, order backlogs, and lost sales

Question 7

What is subcontracting?

Answer 7

Hiring and laying off are done through subcontracting