Operations Management: Creating Value Along the Supply Chain, 7th Edition

Chapter 14. Sales and Operations Planning

In this chapter, you will learn about . . .

• The Sales and Operations Planning Process

• Strategies for Adjusting Capacity

• Strategies for Managing Demand

• Quantitative Techniques for Aggregate Planning

• The Hierarchical Nature of Planning

• Aggregate Planning for Services

Web resources for this chapter include

• OM Tools Software

• Internet Exercises

• Online Practice Quizzes

• Lecture Slides in PowerPoint

• Virtual Tours

• Excel Worksheets

• Excel Exhibits

• Company and Resource Weblinks

www.wiley.com/college/russell

Sales and Operations Planning AT HERSHEY'S

The seasonal demand for chocolate, coupled with its limited shelf life, requires careful coordination of sales and operations planning. Strategies for increasing demand may have unintended consequences for the bottom line if production capabilities and costs are not considered.

Since over 50% of candy purchases are impulse buys, product promotions and merchandising can have a dramatic influence on sales. For example, one way to generate new sales is to take a stable product like Hershey's kisses and dress it up for different seasons (red and green wrapper for Christmas, red and silver for Valentine's Day, pink and green for Easter), or create upscale versions for special occasions, such as chocolate mint, dark chocolate, or white chocolate hugs. However, while seasonal products may increase demand, without a corresponding increase ...