Operations Chapter 14

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  1. Aggregate planning
    Process of determining the quantity and timing of production over an intermediate time frame
  2. Available-to-promise
    The quantity of items that can be promised to the customer, the difference between planned production and customer orders already received
  3. Backlog
    Accumulated customer orders to be completed at a later date
  4. Backordering
    Ordering an item that is temporarily out of stock
  5. Capable-to-promise
    Quantity of items that can be produced and made available at a later date
  6. Chase Demand
    an aggregate planning strategy that schedules production to match demand and absorbs variations in demand by adjusting the size of the workforce, i.e. hiring and firing workers based on demand
  7. Collaborative planning
    • Sharing information and synchronizing production plans across the supply chain
    • Collaborative planning, forecasting, and replenishment
  8. Disaggregation
    The process of breaking down the aggregate plan into more detailed plan
  9. Level production
    An aggregate planning strategy that produces units at a constant rate and uses inventory to absorb variations in demand
  10. Linear decision rule (LDR)
    Mathematical technique for  aggregate planning
  11. Lost sales
    Forfeited sales for out-of-stock items
  12. Management coefficients model
    • A regression technique for aggregate planning
    • Analysis to improve the consistency of planning decisions
  13. Mixed strategy
    Varying two or more capacity factors to determine a feasible production plan
  14. Peak demand
    • Staffing or maintaining resources for high levels of customer service or demand
    • Used when superior customer service is important
  15. Pure Strategy
    Varying only one capacity factor in aggregate planning
  16. Sales & Operations planning
    • Process for coordinating supply and demand
    • -Determines resource capacity needed to meet demand over intermediate time horizon
    • -Establishes company wide game plan for allocating resource
    • -Develops an economic strategy for meeting demand
  17. Search Decision rule (SDR)
    • Pattern search technique for aggregate planning
    • tries to find the minimum cost combination of various workforce levels and production rates
  18. Revenue Management
    • Yield management
    • Seeks to maximize profit from time-sensitive products and services
    • Process of determine the percentage of seats or rooms to be allocated to different fare classes
  19. Things that go into Sales & Operations planning
    • Demand forecasts
    • Company policies
    • Strategic Objectives
    • Financial Constraints
    • Capacity constraints
  20. The Supply & Operations Planning Process
    • Step 1 - end of month reports, fun forecasting model
    • Step 2 - Demand planning, first pass sales plan (includes promotions and input from fields)
    • Step 3 - Supply Planning, first pass operations plan (includes workers, resources and inventories)
    • Step 4 - Pre-S&OP meeting, alternatives, what-ifs, consensus
    • step 5 - executive S&OP meeting, company game plan
  21. Overtime and under-time
    Increasing or decreasing working hours
  22. Subcontracting
    Letting outside companies complete the work
  23. Part-time workers
    Hiring part time workers to complete the work
  24. Strategies for managing demand
    • -Shift demand into other time periods
    • -Offer products or services with counter-cyclical demand patterns
    • -Partner with suppliers to reduce information distortion along the supply chain
  25. Hierarchical planning
  26. General linear programming (LP) model
    LP gives an optimal solution, but demand and costs must be linear
  27. Aggregate planning for services
    • -Services cannot be inventoried
    • -Demand for services is difficult to predict
    • -Capacity is difficult to predict
    • -Service capacity must be provided at the appropriate place and time
    • -Labor is usually the most constraint resouce for services
Author:
Kimmiey
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Card Set:
Operations Chapter 14
Updated:
2015-12-15 13:24:31
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Operations
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