sales and operations planning (19) Flashcards
Aggregate operations plan
a plan for labor and production for the intermediate term with the objective to minimize cost of resources needed to meet demand
The process requires teamwork among marketing and sales, distribution and logistics, operations, finance and product development
Sales and operations planning
The process that companies use to keep demand and supply in balance and to coordinate distribution, marketing and financial plans (cross-functional)
Long range planning (1+ years)
1) the design of manufacturing and service processes and the design of the logistics activities
2) Process planning - Determining the specific technologies and procedures required to produce a product or service
3) strategic capacity planning - determining the long-term capabilities of the production systems
4) supply network planning - determines how the product will be distributed to the customer on the outbound side. One the inbound side, it involves decisions relating to outsourcing production, selection of parts and component suppliers and related decisions
Intermediate range planning 3-18 montsh
1) Forecasting and demand management
Sales and operations planning
Sales plans are inputs for sales force activities
Master scheduling and material requirements planning are designed to generate detailed schedules that indicate when parts are needed for manufacturing activities
Coordinate with these plans are te logistics plans needed to move the parts of finished products through the chain
short-range planning (day to six months)
daily workforce scheduling: scheduling production and shipment orders