CHAPTER 13 supply chain

CHAPTER 13 supply chain - CHAPTER 13 SALES AND OPERATIONS...

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CHAPTER 13 SALES AND OPERATIONS PLANNING - Challenges that organizations face – balancing of its ability to provide the exact quantity of products and services at the exact time customers demand them Sales and marketing execs fail to discuss plans w/ counterparts in SC operations functions Operations execs fail to provide sales and marketing w/ info concerning supply constraints and capacity plans Mismatch between organization’s sales plan and operations plan Solution: sales and operations planning (S&OP) – process to develop tactical plans by integrating customer-focused marketing plans for new and existing products w/ the operational management of the SC I. SALES AND OPERATIONS PLANNING - Intermediate-range planning - Focuses on a time period ranging from 3-18 months - Broken into weekly, monthly, or quarterly increments Depends on specific needs of a company - Occurs at the aggregated, product-family level - Determining how to cope with demand patterns such as those depicted in the previous slides. - Provides the information necessary to actually develop the operational plans. - Brings together all of the plans for the business into one integrated set of plans - Many decisions are constrained - Limited to make decisions regarding labor - Must decide things such as #of shifts/product mix/overtime/contracting/ hiring vs. layoff, etc. - Parties try to resolve potential conflicts among objectives of 3 primary functional groups: sales, operations, and finance Finance: High ROI, maximize return, minimize risk, high contribution customers Sales: Aggregate planning, many product variations, fast response, high service, maximize revenue Operations: Detail planning, fewer products, long and stable production runs, maximize output and minimize cost, reduce variance and maintain
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CHAPTER 13 supply chain - CHAPTER 13 SALES AND OPERATIONS...

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