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9609 · 9.3.5

Operations planning

**Operations planning** (9.3.5) completes **Topic 9**. Show **logical flow**: forecast error propagates through MPS to **wrong material orders**.

Need to know

What you need to know

  • Predicts future sales to guide production and resource allocation.
  • Reduces uncertainty and risks of overproduction or stock-outs.
  • Utilises qualitative (expert opinion, surveys) and quantitative (time-series analysis) methods.
  • Forms the basis for creating the Master Production Schedule (MPS).

Explanation

Operations planning

  1. Predicts future sales to guide production and resource allocation.
  2. Reduces uncertainty and risks of overproduction or stock-outs.
  3. Utilises qualitative (expert opinion, surveys) and quantitative (time-series analysis) methods.
  4. Forms the basis for creating the Master Production Schedule (MPS).
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