SC & OM Business Planning Process

gayugira's version from 2017-07-31 14:49

Section 1

Question Answer
What time range does the business planning process cover?2-10 years
What comes immediately below strategic business planning?Sales and operations planning (S&OP)
Who is responsible for the demand side of S&OP?Marketing
Who is responsible for the internal supply and capacity side of S&OP?Operations
What is the overall objective of S&OP?To balance supply with demand
(...) determines when specific products will be produced, when specific customer orders will be fulfilled, and what capabilities remain available to satisfy unexpected demandS&OP

Section 2

Question Answer
What are the three production planning strategies?Level, chase, and mixed
When is a level production planning strategy useful? (2)When you have expensive machinery or a skilled workforce
What's a disadvantage of a level production planning strategy?Inventory
What's the name of the plan for producing finished goods?The Master Production Schedule (MPS)
What do you call the length of time the MPS covers?The Planning Horizon
After the MPS, what process measures the level of critical resources?Rough cut capacity planning

Section 3

Question Answer
MRP deals with (...)2 itemsDependent demand
What is a BOM?A Bill of Material
What does a BOM cover?All the sub-units required to make a finished product
What is a service industry doing when it tries to maximize profit based on available capacity?Yield management
At what planning level do actual customer orders come into consideration?MPS