Operations & Supply Chain Management - Ch 19

aggregate operations plan

a plan for labor and production for the intermediate term with the objective to minimize the cost of resources needed to meet demand

sales and operations planning

the process that companies use to keep demand and supply in balance and to coordinate distribution, marketing, and financial plans

long range planning

one year or more

intermediate range planning

3 to 18 months

short range planning

a day to 6 months

production rate

number of units completed per unit of time

workforce level

number of workers needed in a period

inventory on hand

inventory carried from the previous period

production planning strategies

plans for meeting demand that involve trade-offs in the number of workers employed, work hours, inventory, and shortages

pure strategy

a simple strategy that uses one option, such as hiring and firing workers, for meeting demand

mixed strategy

a more complex strategy that involves options for meeting demand

yield management

given limited capacity, the process of allocating it to customers at the right price and time to maximize profit