CAOT 31 Lecture Notes - Lecture 12: Operations Plan, Ikea, Yield Management
19 Oct 2020
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Literature: chapter 10 sales and operations planning (aggregate planning) Strategic planning: planning that takes place at the highest levels of the firm, addressing needs that might not arise for years into the future. Tactical planning: covers shorter period, usually 12-24 months out, although planning horizon may be longer in industries with very long lead times, typically more detailed but constrained by longer-term strategic decisions. Detailed planning and control: covers time periods ranging from weeks down to just a few ours out. Three approaches differ in: time frame covered, level of planning detail required, degree of flexibility managers have to change capacity. & then divide resources across individual products/services later. Planning values: values that decision makers use (irrelevant of the approach): to translate sales forecast into resource requirements , determine feasibility and cost of alternative sales and operation plans. Once firm has translated sales forecast into resource requirements -> next step: generate alternative production plans.
