ACCTG 1 Lecture Notes - Lecture 17: Operations Plan, Yield Management, Management System
Document Summary
Two major approaches to s&op; top-down and bottom-up. Top-down planning three steps: (1) develop aggregate sales forecast and planning values planning values are used in next two steps to help management, (2) translate determine feasibility and costs for various production plans three particular. Level, chase and mixed production plans (1) level production plan: production is held make accurate tactical plans based on overall forecast and then divided resources across individual products during detailed planning and control stage. Bottom-up planning; used when product mix is unstable, resource requirements vary greatly, overall sales need to estimate requirements for each set of products separately. Bottom-up planning main difference with top-down is that for each product the products to get an overall picture load profile; display of future capacity requirements. S&op is more than just running the numbers, it is a people process supported by information.
