1. Operations Planning and Scheduling Chapter 14

2. How Sales and Operations Planning fits the Operations Management Philosophy Operations As a Competitive Weapon Operations Strategy Project Management Process Strategy Process Analysis Process Performance and Quality Constraint Management Process Layout Lean Systems Supply Chain Strategy Location Inventory Management Forecasting Sales and Operations Planning Resource Planning Scheduling

6. The Relationship of Sales and Operations Plans to Other Plans

8. Managerial Inputs from Functional Areas to Sales and Operations Plans

19. The Transportation Method Example E.7 The Tru-Rainbow Company produces a variety of paint products. Demand is highly seasonal. Current inventory is 250,000 gallons, and ending inventory should be 300,000 gallons. Regular-time cost is $1.00 per unit, overtime cost is $1.50 per unit, subcontracting cost is $1.90 per unit, and inventory holding cost is $0.30 per gallon per quarter. Determine the best production plan. Maximum overtime in any quarter is 20 % of regular-time capacity. The subcontractor can supply a maximum of 200,000 gallons per quarter. Production can be subcontracted in one period and the excess held in inventory for a future period to avoid a stockout. No backorders or stockouts are permitted. Quarter

20. © 2007 Pearson Education Input Data for Prospective Tru-Rainbow Company Production Plan Transportation Tableau for Tru-Rainbow Company

22. Solution for Tru-Rainbow Company Production Plan © 2007 Pearson Education

23. Solution for Tru-Rainbow Company Production Plan © 2007 Pearson Education