Sales and Operations Planning

Vocabulary flashcards for sales and operations planning lecture.

Sales and Operations Planning

A process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business.

Aggregate Level

Planning at the level of major groups of products.

Production Rate

Units completed per unit of time.

Workforce Level

Number of workers needed in a period.

Inventory on Hand

Inventory carried from previous period.

Cut-and-try approach

Costing out various production planning alternatives and selecting the one that is best - Elaborate spreadsheets developed to facilitate the decision process

Linear programming

Use of mathematical analysis to determine an optimal plan.

Simulation

What-if analysis using simulated demand to evaluate effectiveness of alternative plans