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Essay / Research Paper Abstract
A 3 page paper. This essay explains demand planning and management, production planning, and the two are interrelated. The paper comments on logistics planning. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: ME12_PG699326.doc
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Unformatted sample text from the term paper:
sales and operations of the organization. This kind of planning leads to a production plan that satisfies demand (SAP AG, 2011). Production is scheduled in such as way as to
balance the demand for the product with the companys capacities to produce the product. The company must have all the resources needed to make the product and ship it to
customers. Inbound materials and components from suppliers must be scheduled to fit the production process and schedule. When a company relies on receiving component parts for a product from a
supplier, those components must be received in a certain sequence to put the product together. Production includes all the activities involved in creating a product, including direct physical
work, service, and manufacturing. Logistics is the activity that controls moving physical materials through the value chain. Logistics and production are directly linked to each other because companies can only
produce products if they receive the inputs (such as materials) in a timely fashion (McGraw-Hill, 2009). Companies must also decide who will manufacture their products. For example, when Microsoft
developed the X-Box gaming console, it had to decide whether to build the console themselves or to outsource the construction. Since they are a software company, they do not really
have the manufacturing expertise or capabilities to make the X-Box so they outsourced production to Flextronics (McGraw-Hill, 2009). In this way, both companies were doing what they did best. Because
demand management is viewed as forecasting it is often viewed as an event rather than as a process. It is viewed as something that must be done on a time
schedule, such as once a month. This will inevitably lead to errors and inaccuracies (Crum & Palmatier, 2003). The first thing that must be done is to develop a broad
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