ECON 1 Lecture Notes - Lecture 21: Ikea
Document Summary
10. 1) sales and operations planning (s&op) in the planning cycle. Planning taking place at highest levels of firm, addressing needs that might not arise for years into the future. Planning covering shorter period, usually 12 to 14 months, although may be longer in industries worth longer lead times. Chapter 10 sales and operations planning (aggregate planning) Process to develop tactical plans by integrating marketing plans for new and existing products with the management of the supply chain. Brings together all plans for the business into one integrated set of plans (also called aggregate planning). Planning that covers time periods ranging from weeks down to just a few hours. The three approaches differ in: (1) time frame covered (2) level of planning required (3) degree of flexibility managers have to change capacity. S&op aimed at helping businesses develop superior tactical plans. S&op indicates how organization will use capacity resources to meet expected customer demand.
