REGNRSG 105 Lecture Notes - Lecture 10: Strategic Planning, Load Profile, Planning Horizon
Document Summary
Mix of products must be essentially the same from period to another. Products have very similar resource requirements: bottom-up planning used when the product mix is unstable and resources vary greatly. Best suited when changing production level is impossible or costly and inventory cost are low: chase production plan production is easily changed each period. They do not make the decision for managers: rolling planning horizon s&op plans must be updated on a regular bases. Requires updates on a monthly or quarterly bases. Developing the foundation educating all participants about the benefits of. S&op, identifying appropriate products to plan around, establish info systems to provide accurate planning values typically takes six months. Yield management an approach used by services with highly perishable products in which prices are regularly adjusted to maximize total profit: making capacity match sales. Tiered workforce hire additional employees in peak-demand periods.
