1.What are the differences between sales and operations planning and budgeting?
ID: 2734268 • Letter: 1
Question
1.What are the differences between sales and operations planning and budgeting?
2.A gear manufacturer schedules production of one of the gears in batches of 200 units whenever the projected ending inventory balance in a month falls below 30 units. It takes one month to make a batch of 200 units. The company currently has 90 units on hand. The sales forecast for the next six months is:
Months / 1 / 2 / 3 / 4 / 5 / 6 /.
Forecast/170/90/90/215/85/70.
Prepare a time-phased MPS record showing the sales forecast and MPS for the toy product.
What are the inventory balances at the end of each month?
During the first month, no units were sold. The revised forecast is as follows:
Months/ 2 / 3 / 4 / 5 / 6 /.
Forecas/90/170/90/185/110/.
How does the MPS change?
Explanation / Answer
Answer:1 The primary difference between sales and operations planning and budgeting is that budgeting attempts to achieve a more specific objective.
Sales and operational planning: Sales and operations planning also is known as aggregate planning because this tool considers the whole organization. In this process, high-level management holds meetings to review the financial impact of projections on supply and demand.Sales and operations planning also is known as aggregate planning because this tool considers the whole organization. In this process, high-level management holds meetings to review the financial impact of projections on supply and demand.
Budgeting: The budgeting process allows the company to create a picture of what is available and what will potentially become available to the company based on available resources, production, service and sales.
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