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Operations managment summary H10 operations planning and scheduling $4.27
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Operations managment summary H10 operations planning and scheduling

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This summary deals with operations planning and scheduling. Different types of scheduling, supply options, type of costs and workforce scheduling are appointed.

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  • H10
  • September 13, 2021
  • 5
  • 2020/2021
  • Summary
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OPM H10
Operations Planning and
Scheduling
Operations planning and scheduling = the process of balancing supply with
demand, from the aggregate level down to the short-term scheduling level
Demand management = the process of changing demand patterns using one or
more demand options
- Complementary products  anticipation inventory
- Promotional pricing  workforce adjustment (hiring or layoffs)
- Prescheduled appointments  workforce utilization (over- and undertime)
- Reservations  part-time workers and subcontractors
- Revenue management  vacation schedules
- Backlogs  workforce schedules
- Backorder  job and customer sequence
- Stockouts  expediting
Types of plans with operations planning and scheduling:
- Sales and Operations Plan (S&OP)
o A plan of future aggregate resource levels so that supply is in balance
with demand
o It states a company’s or department’s production rates, workforces
levels, and inventory holdings that are consistent with demand
forecasts and capacity constraints.
o The S&OP is a time-phased plan, meaning that is projected for several
time periods into the future
- Aggregate Plan
o Another term for the sales and operations plan
- Production Plan
o A sales and operations plan for a manufacturing firm that centers on
production rates and inventory holdings
- Staffing Plan
o A sales and operations plan for a service firm, which centers on staffing
and on other human resource-related factors
- Resource Plan
o An intermediate step in the planning process that lies between S&OP
and scheduling.
o It determines requirements for materials and other resources on a more
detailed level that the S&OP.
- Schedule
o A detailed plan that allocates resources over shorter time horizons to
accomplish specific tasks

, Levels in Operations Planning and Scheduling:
- Level 1: Sales and Operations
Planning
o Aggregation
 Services or products
 Workforce
 Time
o Information inputs
o Related plans
 Business plan
 Annual plan
- Level 2: Resource Planning
o A process that takes sales and
operations plans Figure 10.1 Managerial Inputs from Functional Areas to
Sales and Operations Plans
o Processes time standards, routing, and
other information on how services or
products are produces,
o And then plans the timing of capacity
and material requirements
- Level 3: Scheduling
o A process that takes the resource plan
and translates it into specific
operational tasks on a detailed basis


S&OP Supply Options:
1. Anticipation inventory
2. Workforce adjustment
Figure 10.2 The Relationship of Sales and
3. Workforce utilization Operations Plans to Other Plans
4. Part-time workers
5. Subcontractors
6. Vacation schedules

S&OP Strategies:
- Chase strategy
o A strategy that involves hiring and lying off employees to match the
demand forecast
- Level strategy
o A strategy that keeps the workforce constant, but varies its utilization
via overtime, undertime, and vacation planning to match the demand
forecast
- Mixed strategy
o A strategy that considers the full range of supply options

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