BU395 Lecture 13: Chapter 13
Document Summary
Sales and operations planning process of integrating sales forecasts with operations plans. Aggregate operations planning monthly planning for all the products in the same family (produced in the same facility) for the next 12 months or so. Demand options: a) pricing b) promotion c) backorders d) complementary products. Capacity options: a) hiring and laying off permanent workers b) using overtime/idle time c) hiring and laying off part-time/temporary workers d) stockpiling inventories. Aggregate planners might adopt a number of strategies. Some of the more prominent ones are : Change output to match demand period by period. Level output/workforce strategy maintaining a steady rate of output and workforce while meeting variations in demand by a combination of inventories and backorders. Chase demand strategy matching output to demand; the planned output for any period is set at the forecast of demand for that period. Transportation model and notation for aggregate production planning.
