After reading the material in this chapter, you should be able to: To answer such questions as .What is planning? And its role in the management of supply chain. Role of APS, advances in SCM and planning task along the supply chain help in the successful execution of supply chains. | Manufacturing Planning and Control MPC 6th Edition Chapter 4a Advanced Sales and Operations Planning Within the Sales and Operations Planning (SOP) process, modeling procedures can be used to establish overall production and inventory plans. The basic issue is what levels of resources should be provided in each period. Powerful and easily accessible tools are available for solving these models. Agenda Linear Programming Hiring Costs Firing Costs Labor Costs Overtime Costs Inventory Costs Idle Time Costs Inventory Constraints Regular Production Constraint Overtime Production Constraint Workforce Change Constraint Initializing Constraints LP Assumptions Item Value Regular-time cost per employee per month $1,828 Overtime cost/unit $ Inventory carrying cost per unit per month $ Hiring cost/employee $800 Firing cost/employee $1,500 Regular-time productivity (units per month per employee) 83 Maximum overtime units/month 17 Ending inventory ≥ 2,000 units August inventory 16,460 . | Manufacturing Planning and Control MPC 6th Edition Chapter 4a Advanced Sales and Operations Planning Within the Sales and Operations Planning (SOP) process, modeling procedures can be used to establish overall production and inventory plans. The basic issue is what levels of resources should be provided in each period. Powerful and easily accessible tools are available for solving these models. Agenda Linear Programming Hiring Costs Firing Costs Labor Costs Overtime Costs Inventory Costs Idle Time Costs Inventory Constraints Regular Production Constraint Overtime Production Constraint Workforce Change Constraint Initializing Constraints LP Assumptions Item Value Regular-time cost per employee per month $1,828 Overtime cost/unit $ Inventory carrying cost per unit per month $ Hiring cost/employee $800 Firing cost/employee $1,500 Regular-time productivity (units per month per employee) 83 Maximum overtime units/month 17 Ending inventory ≥ 2,000 units August inventory 16,460 units August employees 72 LP Model and Solution Changing cells (decision variables) LP Settings and Options Constraints Ending workforce = actual (72) Reg. production = 2,000 Ending inventory (August) = actual (16,460) Hires/Fires must be integers Minimize total costs Principles To ensure credibility, the match between the real world and the model should be as close as possible. Relatively homogeneous product lines (or portions of lines) allows for a closer match between model and reality. Before the potential of advance techniques can be realized, the firm must invest in training, enhance data, improve basic MPC practices, and determine clear objectives. . Principles Management must realize that significant efforts in model formulation, understanding, testing, and explanation are important to successful applications. Advance techniques must be built on a foundation of good basic practices. Spreadsheet-based models offer executives a
