C215 WGU Operations Mgmt Study Guide

C215 WGU Operations Mgmt Study Guide Demand-Based Options - includes two reactive options and one proactive option Reactive option - the operations department uses inventories and back orders to react to demand fluctuations Proactive option - marketing tries to shift the demand patterns to minimize demand fluctuations Capacity-Based Options - changes output capacity to meet demand finished goods inventory - used to absorb demand fluctuations; allows your company to develop a stable work environment Shifting demand - proactive marketing approach to leveling demand in which your company tries to change consumer buying patterns by offering incentives level aggregate plan - maintains a constant workforce and produces the same amount of product in each time period of the plan The level plan is often used with make-to-stock products such as... - stereos, kitchen appliances, and hardware To calculate the number of employees needed... - divide the number of units needed per month by the monthly output per employee chase aggregate plan - produces exactly what is needed to satisfy demand during each period This may be a better option when a company produces make-to-order products such as custom cabinets, special-purpose equipment, one-of-a-kind items, or highly perishable products - chase aggregate plan hybrid aggregate plan - uses a combination of options. With this plan, your company might maintain a stable workforce supplemented by an inventory buildup and some overtime production to meet demand. Sales and operations planning - integrates the medium-range functional plans developed by marketing, operations, engineering, and finance aggregate plan - Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan Also called production plan - Aggregate plan