Mid-term decisions such as forecasting demand and aggregate planning. Quarter to a year
Perhaps the single most important definition in the book is “total supply chain surplus”—customer value minus supply chain cost. The slides hammer this home repeatedly, emphasizing that success should be measured by total chain profitability, not profits at any individual stage.
Presentation tips
Aggregate planning determines the production, inventory, and capacity levels over a mid-term horizon (typically 3 to 18 months). The objective is to maximize profit by making trade-offs between capacity costs (regular time, overtime, subcontracting) and inventory/backlog costs. 5. Managing Economies of Scale and Uncertainty
Accurate forecasting reduces the mismatch between supply and demand. Once a forecast is established, aggregate planning allows an enterprise to maximize profit over a medium-term horizon. Key Characteristics of Forecasts Supply Chain Management Sunil Chopra 7th Edition Ppt -NEW
The final modules address external relationship dynamics.Integration prevents sub-optimization and the bullwhip effect.
Mimicking consumer choices to predict demand behavior. Aggregate Planning Mid-term decisions such as forecasting demand and aggregate
: Raw materials, work-in-progress, and finished goods. Transportation : Modes and routes used to move inventory. Cross-Functional Drivers
Require an efficient supply chain (Low cost). subcontracting) and inventory/backlog costs. 5.
: Determining how much to charge customers for goods and services. Guide to Presentation Contents (By Part)