A firm supplies products using three strategies: make-to-order (MTO), make-to-stock (MTS), and assemble-to-order (ATO). The manufacturing facility frequently makes last-minute production schedule changes in an attempt to meet customer orders. Which of the following policies should the firm Implement to reduce the number of production schedule changes?
Sales and operations planning (S&OP) is the most appropriate policy for reducing the number of production schedule changes. S&OP involves integrated planning and decision making across different functions within the organization, aligning production and supply with demand forecasts. By implementing S&OP, the firm can better anticipate demand, optimize inventory levels, and create more stable and achievable production schedules, thus minimizing the need for last-minute changes.
D: DTFs are used to stabilize demand forecasts and provide stability for production planning and scheduling. By implementing DTFs, the firm can establish clear boundaries for when changes to demand forecasts can occur, thereby reducing the frequency of last-minute changes to production schedules caused by sudden shifts in customer orders.
Sales and operations planning (S&OP)
no it's not