Sales and Operations Planning: Terms and Definitions, Quizzes of Production and Operations Management

Download Sales and Operations Planning: Terms and Definitions and more Quizzes Production and Operations Management in PDF only on Docsity! TERM 1 Sales & Operations Plan DEFINITION 1 all functions provide input and are affected by the plan demand & supply plans balanced TERM 2 Managing Demand DEFINITION 2 Influence demand patterns to match supply (not random) - promotions, pricing, services - appointments TERM 3 Revenue Management DEFINITION 3 based on available capacity, shift prices to influence demand ex) Travel = hotels, airlines - Travelocity TERM 4 Aggregate Plan DEFINITION 4 Operations Distribution & Marketing Materials Accounting & Finance Engineering Human Resources TERM 5 Production Plan DEFINITION 5 A manufacturing firm's sales and operations plan that centers on production rates and inventory holdings TERM 6 Staffing Plan DEFINITION 6 A sales and operations plan for a service firm, which centers on staffing and on other human resource-related factors TERM 7 Resource plan DEFINITION 7 An intermediate, more detailed, step in the planning process that lies between S&OP and scheduling TERM 8 Schedule DEFINITION 8 A detailed plan that allocates resources over shorter time horizons to accomplish specific tasks TERM 9 Regular Time DEFINITION 9 Regular-time wages plus benefits and pay for vacations TERM 10 Overtime DEFINITION 10 Wages paid for work beyond the normal workweek exclusive of fringe benefits TERM 21 Total Annual Cycle (Total Cost) DEFINITION 21 Total Cost = Annual holding cost + annual ordering or setup cost TERM 22 EOQ DEFINITION 22 EOQ = Sqrt(2DS/H)D = Annual demand (sales per year)S = Ordering or setup cost per lotH = Holding cost per unit per year TERM 23 Time Between Orders (TBO) DEFINITION 23 TBO = (EOQ/ D) * (12 months/ year) TERM 24 Reorder Point (RP) DEFINITION 24 RP = Avg. demand during lead time + safety stock = dbar L + safety stockdbar = average demand per week (or day or months)L = constant lead time in weeks (or days or months) TERM 25 Continuous Review System DEFINITION 25 Total Cost = Annual cycle inventory holding cost + annual ordering cost + annual safety stock holding cost TERM 26 Periodic Review System (P) DEFINITION 26 (T) target inventory level(P) predetermined timeIP = OH + SR - BO (covers demand over a protection interval of P&L)T - IPDbar(P+L) (the average demand during the protection interval)T = Dbar(P+L) + Safety Stock (protection interval)