Classes 22-23 - SOP - Chapter 13

Classes 22-23 - SOP - Chapter 13 - BUS 370: Sales &...

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BUS 370: Chapter 13 Donavon Favre College of Management North Carolina State University
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Chapter Objectives Be able to: Distinguish among strategic planning, tactical planning, and detailed planning and control. Describe why sales and operations planning (S&OP) is important to an organization and its supply chain partners. Generate multiple alternative sales and operations plans. Describe the differences between top-down and bottom-up S&OP and discuss the strengths and weaknesses of level and chase production strategies. Discuss the organizational issues that arise when firms decide to incorporate S&OP into their efforts. Examine how S&OP can be used to coordinate activities up and down the supply chain.
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Covolo Diving Gear Marketing Forecast = 30,000 per month at the beginning of the year By March, the forecast rose to 33,000 Production could only manage 31,000 Limits on special parts from German supplier High level of frustration and finger pointing among Covolo executives
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Position in the Overall Business Planning Cycle Decisions Time Frame Product and process “Bricks and Mortar” 18+ months Employment and overall inventory levels Demand levels to meet at the product family level 2 to 18 months Specific products and times Scheduling of people and equipment Less than 2 months Long-Range Plans Short-Range Plans
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Sales and Operations Planning Purpose: Select capacity options over the intermediate time horizon Capacity options include: Workforces Shifts Overtime Subcontracting Inventories
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S&OP continued (2 - 18 months out) Outside of time frame strategic planning Inside of time frame tactical planning “Big Picture” approach to planning Families or groups (aggregation) of: Products Resources Technologies or skills Provide “rough” estimates
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Strategic Capacity Levels Existing buildings Processes Demand Management Forecasts of customer demand Need for spares, etc. Pricing
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This note was uploaded on 04/21/2009 for the course BUS 370 taught by Professor Favre during the Spring '08 term at N.C. State.

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Classes 22-23 - SOP - Chapter 13 - BUS 370: Sales &...

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