Sales and Operations Planning

These flashcards cover key terms and concepts related to Sales and Operations Planning and Supply Chain Management as discussed in class.

Supply Chain Resiliency

The ability of a supply chain to recover from, adapt to, and anticipate disruptions.

Sales and Operations Planning (S&OP)

A process for integrating marketing and operations plans to develop a tactical plan that balances supply and demand.

Quantitative Benefits of S&OP

Improved forecast accuracy, higher customer service, more stable supply, & better new product introduction.

Qualitative Benefits of S&OP

Better organizational teamwork, faster & better aligned decision making, greater accountability for performance, & better business visibility

Aggregate Planning Strategies

Methods used to balance production, inventory, resources, and demand through strategies like level, chase, and hybrid.

Aggregate Production Costs

The total costs associated with producing goods, including expenses related to holding inventory, regular production, overtime, hiring, layoffs, backorders, and subcontracting.

Level Production Strategy

A strategy where production is maintained at a constant rate, using inventory levels to buffer supply and demand.

Level Production Strategy Equation

P= (∑D_i+ EI - BI)/N

Chase Production Strategy

A strategy that adjusts production to match demand while keeping inventory levels stable and low.

Hybrid Planning Strategy

A combination of level and chase strategies that balances production and workforce levels based on demand.

Inventory Holding Cost

The cost associated with storing unsold goods or inventory.

Demand Planning

The management process of forecasting customer demand to guide production and inventory strategies.

Six Sigma

A set of techniques and tools for process improvement aimed at reducing defects and improving quality.

Value Density

The ratio of a product's value to its weight or volume, influencing shipping and transportation decisions.

Bill of Materials (BOM)

A comprehensive list of raw materials, sub-assemblies, and components needed to manufacture a product.

Material Requirements Planning (MRP)

A production planning and inventory control system used to manage manufacturing processes by scheduling and coordinating all parts.

Executive Meeting in S&OP

A meeting that focuses on reviewing alternatives and making decisions regarding the aggregate demand and production plans.

Big Data in S&OP

Large volumes of data used to improve supply chain visibility and responsiveness through analytics.

Yield Management

Adjusting prices in response to demand

Dynamic Pricing

Maximises Revenue from perishable, fixed-capacity inventory