Flashcards: Mastering Sales & Operations Planning Strategies — 16 cards

Sales & Operations Planning — definition?

A process aligning demand and supply strategies.

Aggregate products — role?

Simplify planning by grouping similar products.

Level strategy — function?

Fix production rate, use inventory to meet demand.

Chase strategy — difference?

Vary production to match demand, minimal inventory.

Cost comparison — level vs chase?

Level has higher inventory costs; chase has higher resource adjustment costs.

Hybrid strategy — purpose?

Combine level and chase for flexible planning.

Optimization model — role?

Mathematically balances costs and constraints in hybrid S&OP.

Workforce extensions — include?

Part-timers, overtime, outsourcing for demand flexibility.

Case studies — purpose?

Apply S&OP strategies to real scenarios.

Production inputs — integration?

Demand forecasts, capacity, inventory, and constraints.

Aggregate products — measurement?

Units, weight, volume, dollars, or fictitious units.

Resource aggregation — example?

Combine machine hours, labor hours, storage.

Level vs chase — key difference?

Level fixes production; chase varies it.

Cost assessment — inventory costs?

Warehouse, interest, opportunity costs.

Hybrid model — formulation?

Minimize total costs with variables for resources, inventory, and production.

Demand variability — impact?

Affects strategy choice and planning accuracy.