Chapter 10: Planning and
Scheduling Operations
Operating planning and schednling = The process of balancing supply with demand, from
the aggregate level down to the short-term scheduling level.
Important because:
- Requires managerial inputs from all of the frms functons.
- Each functon is affected by the plan.
- Each deparment and group in a frm has its own workforce
- Business is part of everyday life
Levels in Operations Planning and Scheduling
The long-term plans form an umbrella under which short-term plans exist.
Level 2 plans must be consistent with level 1 plans, and level 3 plans must be consistent
with level 2 plans.
Level 1: Sales and Operations Planning
Companies begin with plans that take a macro view of their business.
Aggregation
Three dimensions:
- Service or prodncts
Prodnct family = A group of services or products that have similar demand
requirements and common process, labor, and materials requirements.
- Workforce
- Time looks at months, quarters, or seasons rather than weeks, days or hours.
Scheduling Operations
Operating planning and schednling = The process of balancing supply with demand, from
the aggregate level down to the short-term scheduling level.
Important because:
- Requires managerial inputs from all of the frms functons.
- Each functon is affected by the plan.
- Each deparment and group in a frm has its own workforce
- Business is part of everyday life
Levels in Operations Planning and Scheduling
The long-term plans form an umbrella under which short-term plans exist.
Level 2 plans must be consistent with level 1 plans, and level 3 plans must be consistent
with level 2 plans.
Level 1: Sales and Operations Planning
Companies begin with plans that take a macro view of their business.
Aggregation
Three dimensions:
- Service or prodncts
Prodnct family = A group of services or products that have similar demand
requirements and common process, labor, and materials requirements.
- Workforce
- Time looks at months, quarters, or seasons rather than weeks, days or hours.
