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Chapter : Sales and Operations Planning
1. The relationships among manufacturing, logistics, service, and marketing plans
This concept refers to the interconnected planning processes that ensure a company's manufacturing schedules, logistics operations, service delivery, and marketing strategies are aligned and working cohesively towards the overall business objectives.
In a business setting, these relationships are crucial for balancing supply and demand, optimizing resource use, and making sure the product or service delivery meets customer expectations and demand created by marketing activities.
If I were running a small business selling handmade crafts, I would need to know that my production capacity (manufacturing) can meet the sales forecasts (marketing), and that I have the logistics in place to deliver products on time.
Aggregate planning techniques
Aggregate planning techniques are methodologies used to develop, analyze, and maintain a preliminary, approximate schedule of the overall operations of an organization.
These techniques are applied to balance production and inventory levels with fluctuating demand over a medium-term horizon, often at a product family level rather than at the SKU level.
If I were managing a seasonal business, like a ski resort, I would use aggregate planning to estimate the number of visitors and accordingly plan for the right number of staff, the amount of rental equipment, and the level of food and beverage supplies needed for the season.
2. Yield management
Yield management is a variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue...…I were running a small electronics assembly business, I would rely on an MRP system to keep track of the various components needed for each product.
Additional Substantive Insights
1. Integration of Technology
The successful application of concepts like MRP and yield management can depend on the use of tools like AI and machine learning, for things like demand forecasting.
2. Sustainability Considerations
In both sales and operations planning and material requirements planning, sustainability is becoming a critical factor. Companies consider the environmental impact of their logistics, manufacturing, and material sourcing decisions.
3. Globalization Impact
Global supply chains have made the relationships among manufacturing, logistics, service, and marketing plans more complex as companies must now plan and coordinate across different time zones, cultures, and regulatory…
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