Operations Management MGNT 3430
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This 2 page Class Notes was uploaded by Gillian Mosciski on Monday October 12, 2015. The Class Notes belongs to MGNT 3430 at Georgia Southern University taught by Ednilson Bernardes in Fall. Since its upload, it has received 80 views. For similar materials see /class/222034/mgnt-3430-georgia-southern-university in Business, management at Georgia Southern University.
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Date Created: 10/12/15
Operations Planning amp Scheduling Ch 15 1 State the overall purpose of operations planning and scheduling a Operations planning and scheduling is the process of making sure that demand and supply plans are in balance at all levels i Sales and operations planning and scheduling ii Balances from the aggregate level down to the short term scheduling level iii Balances the supply side with the demand b Purpose It s at the core of the entire supply chain integration i Requires input from all of the firms functional departments i Requires managerial inputs from all of the firm s functions iii Each function is affected by the plan 2 Explain the idea of aggregation as used in operations planning and scheduling a It s the general amp broad overarching plan b The process of developing analyzing and maintaining a preliminary approximate schedule of the overall operations of an organization c The aggregate plan generally contains targeted sales forecasts production levels inventory levels and customer backlogs d This schedule is intended to satisfy the demand forecast at a minimum cost e Minimizes the short sighted effects of day to day planning 3 Identify the different kinds of operations plansschedules and how they relate to each other Fig 151 a 4 Explain the purpose of demand management and identify alternative options for achieving it a Demand Management Processes of changing demand patterns using one or more demand options b Demand Options Complementary products Similar resource requirement but different cycles Promotional Pricing Advertising direct marketing and other forms of promotion are used to shift demand Prescheduled Appointments Plan entirely so that demand supply capacity iv Reservations Similar to prescheduled appointments but is perishable ie plane tickets hotel rooms etc Managers can impose penalties for no shows v Revenue Management Varying pricing to increase demand in periods when demand is less than peak 1 High segmentation 2 Variation by segment 3 High fixedlow variable costing vi Backlogs Grow a back log in high demand fill when demand is low level 1 There is a definite lead time between order placed and delivered vii Backorder amp Stockouts 1 Back Orders orders can t be filled immediately but are filled ASAP a By postponing delivery on current orders demand is shifted to period when capacity is not fully utilized b Demand is too unpredictable c Demand is too costly to maintain d Can use a hybrid eg slow movers with spikes 2 Stockouts Order lost and customer goes somewhere else 5 Identify alternative supply options for meeting demand a Anticipation Inventory Absorbs uneven Supply ampor demand ii39 iv v High demand with spikes high holding costs no customization Increased inventory when demand increases Less fluctuations in employee levels No temp workers No overtime b Workforce adjustment OvertimeUndertime working employees temporarily to mirror spikes in demand 1 Workers don t like the variability of an inconsistent schedule Works best with unskilledsemi skilled workers amp large labor pool Depends heavily on labor pool quantqual c Part time work paid only for time worked can be very little They may work increased hours during peak demand Low skill positions Usually no benefits d Subcontractors Extra capacity utilized during periods of high demand Firms trade employees e Vacation May shut down the operations during key low demand months 6 Explain and contrast the chase and level strategies for aggregate planning a Level i ii iii iv v vi viI b Chase Maintains a constant level of output and still meet demand A level strategy seeks to produce an aggregate plan that maintains a steady production rate andor a steady employment level Raises or lowers inventory levels in anticipation of increased or decreased levels of forecast demand Level workforce and a steady rate of output when demand is somewhat low Establish higher inventory levels than are currently needed When demand increases the firm is able to continue a steady production ratesteady employment level while allowing the inventory surplus to absorb the increased demand Cons 1 Excess inventory leading to increased holding costs 2 Outsourcing in cases of increased demand 3 Overtime costs 4 Backorder costs 5 Loss of customer goodwill Matches demand and capacity period by period Cons 1 Increased HR problems considerable hirefirelayoff insecureunhappy employees 2 Increased inventory holding costs 3 Labor unions 4 Erratic use of plant equipment Major advantage 1 It holds inventory amp workers at lowest level maintaining significant cost savings 2 Just in time utilizes Chase strategy
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