Krajewski SN Chapter 14 - Chapter 14 1. Definitions Sales...

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Chapter 14 Sales and Operations Planning A. Sales and Operations Planning Across the Organization 1. Definitions a. b. Staffing plan c. Production plan 2. Requires managerial inputs from all of the firm’s functions 3. How is each function affected by the plan? 4. B. The Purpose of Sales and Operations Plans 1. Balancing demand and supply plans 2. Types of aggregation a. b. c. 3. The relationship of sales and operations plans to other plans a. b. c. d. SN:14-1
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SN:14 - 2 Chapter 14: Sales and Operations Planning C. The Decision Context 1. Information inputs a. b. c. d. 2. Typical Objectives a. Minimize costs/maximize profits b. Maximize customer service c. Minimize inventory investment d. Minimize changes in production rates e. Minimize changes in workforce levels f. Maximize utilization of plant and equipment 3. Reactive alternatives are actions that can be taken to cope with demand requirements. a. Anticipation inventory b. Workforce Adjustment c. Workforce Utilization Overtime Undertime d. Vacation schedules e. Subcontractors f. Backlog g. Backorders h. Stockouts 4. Aggressive alternatives a. Complementary products—services or products that have similar resource requirements but different demand cycles. b. Creative pricing, such as promotional campaigns are designed to increase sales. 5. Planning strategies a. Chase strategy b. Level-utilization strategy c. Level-inventory strategy
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Chapter 14: Sales and Operations Planning SN:14-3 d. Mixed strategy 6. Relevant constraints and costs a. Constraints b. Types of costs 7. 8. Data for Applications 14.1-14.3 for comparing strategies The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the
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Krajewski SN Chapter 14 - Chapter 14 1. Definitions Sales...

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