RSM219H1 Chapter Notes - Chapter 1: Business Plan, Cellular Manufacturing
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RSM219H1 Full Course Notes
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Document Summary
Operations planning: the business plan and forecasts developed by top managers guide operations planning. Business plan outlines goals and objectives, including the specific goods and services that the firm will offer. Managers also develop an long range production plan through forecasts of future demand for both new and existing products. Forecast: estimates of future demand for both new and existing products. Covering a 2-5 year period, the production plan specifies the number of plants or service facilities and the amount of labour, equipment, transportation, and storage that will be needed to meet demand also specifies how resources will be obtained. Capacity: the amount of a good that a firm can produce under normal working conditions. Depends on how many people it employs and the number and size of its facilities. Long-range planning takes into account both current and future: capacity planning for producing goods capacity. Ensuring that a manufacturing firm"s capacity slightly exceeds the normal demand for its product.
