BU395 Chapter Notes - Chapter 13: Variable Pricing, Yield Management, Master Production Schedule
Document Summary
Organizations make capacity and production decisions on three levels: long term, intermediate term, and short term. Long term decisions relate to products selection, facility size and location, major equipment decisions, and layout of facilities. Short-term decisions include scheduling jobs, workers, and equipment. Sales and operations planning process of integrating sales forecasts with operations plans. The process must reconcile all supply, demand, and new-product plans at both the detail and aggregate level and tie them to the strategic plan. 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. Useful for organizations that experience seasonal fluctuations in demand. Planners must make decisions on output rates, employment levels and changes, inventory levels and changes, and backorders. In aggregate operations planning, planners focus on a group of similar products, or sometimes an entire line.
