Explain the operational components of planning, sourcing, making, and delivering.
Describe the importance of sales, operations, and resource planning for the supply chain.
Why it is critical to have an accurate sales forecast.
Planning: In operation, there are several components that help to prepare the effective framework related to organizational operational process by that the products can be produced. The major component of planning is asset management that can be related to the place of operation and machinery equipments (Cohen, 2006). The other components of planning are transportation facilities and delivery of finished goods because it could facilitate the organization to make profitable inventory and availability of products in the market. Planning also includes raw material and its quality as a component because it helps to produce finished goods for selling (Ray & Demand Media, 2012). The other operational component of planning is the operational procedures that could be used to produce products without any defect.
Sourcing: The major and important component of sourcing is the selection of the suppliers because it can affect the cost of products. The other one is the negotiation contract that could help to bind the supplier to supply and deliver required materials timely (Kopetz, 2011). The order regarding the materials and the information management are other vital components because these components are useful for the organization to gain profits without increment in inventory cost.
Making: Effective and significant implementation of operational planning is an important component in the making process because it forces ...
The importance of operational components are determined.