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Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

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Levels in Operations Planning and Scheduling

Managers develop plans for their operations covering varying time spans, from the long term to the short term. These plans form a hierarchy: The long-term plans form an umbrella under which short-term plans exist. Sales and operations plans exist at Level 1 and represent the long-term operations plans. These plans form the basis for major outlays for materials and resources and consequently cannot be very specific regarding products or services. Resource plans exist at Level 2 and are more detailed than the sales and operations plans and cover a shorter term. The most detailed plans are the schedules in Level 3, which cover very short time horizons and relate to specific products and resources. Level ...

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