Chapter Highlights
Planning begins with the development of the strategic business plan that provides your company's direction and objectives for the next 2 to 10 years. Marketing develops a plan that enables the company to satisfy the goals of the strategic business plan. The aggregate plan identifies the resources needed by operations to support the marketing plan.
Sales and operations planning integrates plans from the other functional areas and regularly evaluates the company's performance. The process begins with a comparison of actual demand and sales against planned demand. Forecasts are updated and the market is reevaluated, and any changes in the marketing plan are reviewed by operations, engineering, and finance.
The level aggregate plan maintains the same size workforce and produces the same output each period. Inventories and back orders absorb fluctuations in demand. The chase aggregate plan changes the capacity each period to match demand.
Demand patterns can be smoothed through pricing incentives, reduced prices for out-of-season purchases, or nonprime service times. ...
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