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Chapter 14 sales and capacity planning. This chapter includes contents: The sales and operations planning process, strategies for adjusting capacity, strategies for managing demand, quantitative techniques for aggregate planning, hierarchical nature of planning, aggregate planning for services. | 1 Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 14 Sales and Capacity Planning OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition 1 Learning Objectives The Sales and Operations Planning Process Strategies for Adjusting Capacity Strategies for Managing Demand Quantitative Techniques for Aggregate Planning Hierarchical Nature of Planning Aggregate Planning for Services 14-2 2 Sales and Operations Planning Determines resource capacity to meet demand over an intermediate time horizon Aggregate refers to sales and operations planning for product lines or families Sales and Operations planning (S&OP) matches supply and demand Objectives Establish a company wide plan for allocating resources Develop an economic strategy for meeting demand 14-3 3 Sales and Operations Planning Process 14-4 4 Monthly S&OP Planning Process 14-5 5 Disaggregation Breaking an aggregate plan into more detailed plans Create Master Production Schedule | 1 Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 14 Sales and Capacity Planning OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition 1 Learning Objectives The Sales and Operations Planning Process Strategies for Adjusting Capacity Strategies for Managing Demand Quantitative Techniques for Aggregate Planning Hierarchical Nature of Planning Aggregate Planning for Services 14-2 2 Sales and Operations Planning Determines resource capacity to meet demand over an intermediate time horizon Aggregate refers to sales and operations planning for product lines or families Sales and Operations planning (S&OP) matches supply and demand Objectives Establish a company wide plan for allocating resources Develop an economic strategy for meeting demand 14-3 3 Sales and Operations Planning Process 14-4 4 Monthly S&OP Planning Process 14-5 5 Disaggregation Breaking an aggregate plan into more detailed plans Create Master Production Schedule for Material Requirements Planning 14-6 6 Collaborative Planning Sharing information and synchronizing production across supply chain Part of CPFR (collaborative planning, forecasting, and replenishment) involves selecting products to be jointly managed, creating a single forecast of customer demand, and synchronizing production across supply chain 14-7 7 Available-to-Promise (ATP) Quantity of items that can be promised to customer Difference between planned production and customer orders already received Capable-to-promise quantity of items that can be produced and mad available at a later date 14-8 8 ATP 14-9 9 ATP 14-10 10 ATP 14-11 11 Rule Based ATP 14-12 12 Meeting Demand Strategies Adjusting capacity Resources to meet demand are acquired and maintained over the time horizon of the plan Minor variations in demand are handled with overtime or under-time Managing demand Proactive demand management 14-13 13 Strategies for Adjusting Capacity Level production Producing at a constant .
