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Planning for Service Operations
Read the critical thinking question on page 640 in your text. Give your recommendations to management using operations management related principles in 200 words.
Critical Thinking Question:
Service operations often face more difficulty in planning than their manufacturing counterparts. However, service does have certain advantages that manufacturing often does not. Explain service planning difficulty, and the advantages and disadvantages.
Key terms:
Aggregate planning, 611
Available-to-promise (ATP) inventory, 633
Chase demand strategy, 619
Level capacity strategy, 619
Master production schedule (MPS), 631
Master schedule, 630
Aggregate planning rough-cut capacity planning (RCCP), 632
Sales and operations planning, 611
Simulation models, 627
Time Fences, 632
Yield management, 630
(Stevenson, William. Operations Management, 10th Edition, 10th Edition. McGraw-Hill Primis Custom Publishing, Apr-10. P.647).

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