BUS 370 Final Exam 3 Study Guide

BUS 370 Final Exam 3 Study Guide - BUS 370 Final Exam 3...

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BUS 370 Final Exam 3 Study Guide Covolo Diving Gear Case – Marketing forecast was 30,000 per month at the beginning of the year, by March the forecast rose to 33,000 and production could only manage 31,000. There were limits on special parts from the German supplier and the supplier could not just increase their shipments without some notice. There were only 2 months a year, decided to implement S&OP and meet monthly. Sales & Operations Planning – a business process that helps firms plan and coordinate operations and supply chain decisions over a tactical time horizon (usually 4-12 months out). The purpose is to select capacity options over the intermediate time horizon. Capacity options include: workforces, shifts, overtime, subcontracting, and inventories. (2 - 18 months out) - Outside of time frame ð strategic planning. Inside of time frame ð tactical planning “Big Picture” approach to planning. Families or groups (aggregation) of: Products, Resources, Technologies or skills. Provide “rough” estimates. Monthly meetings by senior management, evaluates supply, demand, cash flow for future periods, align tactical plans - consensus on single operating plan, allocates critical resources of people, capacity, materials, time and money. Production, finance, and marketing are at the family level. Position in the Overall Business Planning Cycle: Long-Range Plans – Decisions (product and process, “Bricks and Mortar”). Time Frame (18+ Months) – Decisions (Employment and overall inventory levels, Demand levels to meet at the product family level). Time Frame (2 to 18 months) Short-Range Plans Decisions (Specific products and times, Scheduling of people and equipment). Time Frame (Less than 2 months) Inputs to the Process: Strategic Capacity Levels – Existing buildings, processes External Capacities – Suppliers, subcontractors Demand Management – Forecasts of customer demand, need for spares, pricing Strategic Planning – takes place at the highest levels of the firm, addressing needs that might not arise for years into the future. Tactical Planning – it covers a shorter period, usually four months to a year out, although the planning horizon may be longer in industries with very long lead times (such as engineer-to-order firms). – it covers time periods ranging from weeks, down to just a few hours out into the future. Determining the Approach (Top Down vs. Bottom Up): Are resource needs similar across various products or services offered? Yes – Top Down Planning – Alternative production strategies (level, chase, mixed) No – Bottom-up Planning - Alternative production strategies (level, chase, mixed) Is the mix of products or services the same from one period to the next? Yes – Top Down Planning
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BUS 370 Final Exam 3 Study Guide - BUS 370 Final Exam 3...

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