Term
| Sales and operations planning (S&OP): |
|
Definition
| The process of planning future aggregate resource levels so that supply is in balance with demand. |
|
|
Term
|
Definition
| A sales and operations plan of a service firm, which centers on staffing and other human resource–related factors. |
|
|
Term
|
Definition
| A sales and operations plan of a manufacturing firm, which centers on production rates and inventory holdings. |
|
|
Term
|
Definition
The sales and operations plan is useful because it focuses on a general course of action, consistent with the company’s strategic goals and objectives, without getting bogged down in details.
A company can aggregate its workforce in various ways as well, depending on its flexibility.
The company looks at time in the aggregate – months, quarters, or seasons—rather than in days or hours. |
|
|
Term
|
Definition
| A group of customers, services, or products that have similar demand requirements and common process, labor, and materials requirements. |
|
|
Term
|
Definition
| A projected statement of income, costs, and profits. |
|
|
Term
| Annual plan or financial plan |
|
Definition
| A plan for financial assessment used by a nonprofit service organization. |
|
|
Term
|
Definition
Six objectives usually are considered during development of a plan:
Minimize Costs/Maximize Profits
Maximize Customer Service
Minimize Inventory Investment
Minimize Changes in Production Rates
Minimize Changes in Workforce Levels
Maximize Utilization of Plant and Equipment |
|
|
Term
|
Definition
| are actions that can be taken to cope with demand requirements. |
|
|
Term
|
Definition
| is inventory that can be used to absorb uneven rates of demand or supply. |
|
|
Term
|
Definition
| Hiring and laying off to match demand. |
|
|
Term
|
Definition
| Use of overtime and undertime. |
|
|
Term
|
Definition
| Use of plant-wide vacation period, vacation “blackout” periods. |
|
|
Term
|
Definition
| Outsourcing to overcome short-term capacity shortages. |
|
|
Term
|
Definition
| An accumulation of customer orders that have been promised for delivery at some future date. |
|
|
Term
|
Definition
| A customer order that cannot be filled immediately but is filled as soon as possible. |
|
|
Term
|
Definition
| An order that is lost and causes the customer to go elsewhere. |
|
|
Term
|
Definition
| are actions that attempt to modify demand and, consequently, resource requirements. |
|
|
Term
|
Definition
| Services or products that have similar resource requirements but different demand cycles. |
|
|
Term
|
Definition
| Promotional campaigns designed to increase sales with creative pricing. |
|
|
Term
|
Definition
| A strategy that involves hiring and laying off employees to match the demand forecast. |
|
|
Term
| Level-utilization strategy: |
|
Definition
| A strategy that keeps the workforce constant, but varies its utilization to match the demand forecast. |
|
|
Term
|
Definition
| A strategy that relies on anticipation inventories, backorders, and stockouts to keep both the output rate and the workforce constant. |
|
|
Term
|
Definition
| A strategy that considers and implements a fuller range of reactive alternatives than any one “pure” strategy. |
|
|
Term
|
Definition
The planner usually considers several types of costs when preparing sales and operations plans.
Regular-Time Costs: These costs include regular-time wages plus contributions to benefits, Social Security, retirement funds, and pay for vacations and holidays.
Overtime Costs: Overtime wages typically are 150 percent of regular-time wages.
Hiring and Layoff Costs: Include the costs of advertising jobs, interviews,training programs, exit interviews, severance pay, and lost productivity.
Inventory Holding Costs
Backorder and Stockout Costs |
|
|
