Chapter_13_S_OP - Sales and Operations Planning Michigan...

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Michigan State University, 2011 Sales and Operations Planning
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Michigan State University, 2011 - 2 - Sales and Operations Planning: Aggregate Planning Medium term (3-18 months) Many decisions are constrained Must decide things such as #of shifts/product mix/overtime/contracting/ hiring Vs. layoff, etc.
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Michigan State University, 2011 - 3 - Example: Aggregate Demand Monthly Demand 0 500 1000 1500 2000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Units Prod B Demand Prod A Demand Average Annual Demand
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Michigan State University, 2011 - 4 - Another Example: Target Stores
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Michigan State University, 2011 - 5 - Sales and Operations Planning Process 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.
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Michigan State University, 2011 - 6 - : process for integrating marketing and operations plan to develop a tactical plan Attempt to balance supply and demand Supply Demand Sales and Operations Planning
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Michigan State University, 2011 - 7 - Finance High ROI Maximize return •Minimize risk •High contribution customers Marketing/Sales Aggregate planning Many product variations •Fast response, high service •Maximize revenue Operations Detail planning Fewer products Long, stable production runs Maximize output, minimize cost Reduce variance, maintain ‘up-time’ Balancing Objectives
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Michigan State University, 2011 - 8 - Inputs Inventory Replenishment Capacity Constraints Mix Constraints Material Transportation Storage Supply Constraints Inputs Orders on hand Current Customers New Customers Competition Margin Analysis New Products Promotion plans Pricing Business Planning (Budget/Forecast) Unconstrained Marketing Plan Sales & Operations Planning Process Sales Plan Aggregate Production Plan Resource Plan
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Michigan State University, 2011 - 9 - Quantitative benefits:
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This note was uploaded on 10/21/2011 for the course SCM 303 taught by Professor Bixbycooper during the Spring '09 term at Michigan State University.

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Chapter_13_S_OP - Sales and Operations Planning Michigan...

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