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    Welcome to Sales & Operations Planning!


    *Please see syllabus PDF document under course materials for more detailed information*


    Overview


    Sales and operations planning (S&OP) aims to align a firm’s demand, supply and finances to support executive decision-making. This involves forecasting demand; optimizing inventory and working capital; managing sales through pricing and promotions; and aligning these decisions with the firm’s overall business strategy.

    In this course, we will develop an understanding of these different facets of S&OP. The first half (roughly) of the course will focus on analyzing and managing demand. In the second half, we will consider ways to plan supply to match it with demand.  As these processes involve considerable quantitative decision-making, we will learn to apply analytics tools to support such decisions (using Excel/R). The course will be hands-on, with practical exercises with these tools in most sessions.

    Instructor

    Heikki Peura

    heikki.peura@aalto.fi

    T205, Ekonominaukio 1

    Office hours by appointment

    https://www.peura.org


    Prerequisites


    Essential: Basic knowledge of operations management and supply chains (Tuotantotalouden perusteet, or similar).

    Strongly recommended: one (or several) of the following courses to ensure that you understand relevant terms and concepts for the course:

    • Sustainable Supply Chains
    • Procurement and Strategic Sourcing
    • Process Analysis and Management
    • Business Decisions 2 / Business Analytics 2


    Schedule


    Week

    Lecture Date & Time

    Topic

    To note

    Please see detailed instructions for preparing for each class in Session details below.

    Assignment Due Dates

    Week 1 26.2-3.3

    Lecture 1

    Tue 27.2 at 9:15-12

    Väre F102

    		 Introduction

     

    Format: lecture + in-class game

     

    Lecture 2

    Thu 29.2 at 9:15-12

    Väre M202

    Forecasting demand

     

    Format: lecture + checkpoint exercises

    From this session onwards, we will do computer exercises in class: please bring your laptop to every class.

    Week 2

    4.3-10.3

    Lecture 3

    Tue 5.3 at 9:15-12

    Väre F102

    Regression models for demand analytics

     

    Format: lecture + checkpoint exercises

     

    7.3: L02 checkpoint

    Lecture 4

    Thu 7.3 at 9:15-12

    Väre M202

    Advanced demand analytics

     

    Format: lecture + checkpoint exercises

    Forecasting assignment starts

    Week 3

    11.3-17.3

    Lecture 5

    Tue 12.3 at 9:15-12

    Väre F102

    Demand and pricing

    Format: lecture + checkpoint exercises


    Submit first forecast 13.3

    12.3: L03 checkpoint

    14.3: L04 checkpoint

     

    Lecture 6

    Thu 14.3 at 9:15-12

    Väre Q201

    Inventory management

     

    Format: case lecture + checkpoint exercises

    Mini-Case: Club Francais du Vin. Please prepare to answer case questions in class (see session details).

    Submit second forecast 15.3

    Week 4

    18.3-24.3

    Lecture 7

    Tue 19.3 at 9:15-12

    Väre F102

    Revenue management

     

    Format: lecture + checkpoint exercises

    Exercises based on case: BlueSky Airlines (A)

    Submit third forecast 19.3

    19.3: L05 checkpoint

    21.3: L06 checkpoint

     

    Lecture 8

    Thu 21.3 at 9:15-12

    Kauppakorkeakoulu V002

    Managing inventory over time

     

    Format: lecture + checkpoint exercises

     

     

    Week 5

    25.3-7.4

    Lecture 9

    Tue 26.3 at 9:15-12

    Väre F102

    Tactical operations planning

    Format: lecture + checkpoint exercises

    SC game first round 25.3 – 27.3

    26.3: Forecasting assignment

    26.3: L07 checkpoint

    4.4: L08 checkpoint

    5.4: individual problem set

    NOTE: NO LECTURES

    ON  28.3 AND 2.4

    ENJOY THE BREAK!

    Lecture 10

    Thu 4.4 at 9:15-12

    Kandidaattikeskus U7 – U135a

    The bullwhip effect in supply chains

     

    Format: in-class game.

    We will play the Beer Game. Please arrive on time so we can start promptly.

    Week 6

    8.4– 14.4

    Lecture 11

    Tue 9.4 at 9:15-12

    Väre Q201

    Planning for new products

     

    Format: case discussion

    Case: Canyon Bicycles. Please prepare to answer case questions in class (see session details).

    SC game second round 8.4 – 10.4

    9.4: L09 checkpoint

    11.4: L10 checkpoint

     

    16.4: L11 checkpoint

    17.4: supply chain game report

     

    Lecture 12

    Thu 11.4 at 9:15-12

    Kauppakorkeakoulu V002

    Managing S&OP

    Format: lecture + review

    We will review class topics to prepare for the exam.

    Exam week

    Fri 19.4 at 9:00-12:00

    Course exam on campus

     



    Learning outcomes


    After this course the student will master operations and business planning principles. The student is able to apply common forecasting techniques, inventory management models and capacity management methods for supply chain planning. In addition, the student understands the dynamic of sales and operations planning (S&OP) as well as its advanced form IBP (integrated business planning) and is able to facilitate such a cross-functional process in both manufacturing and service organisations.


    Assessment


    1. Forecasting assignment (group) 20%
    2. Supply chain game assignment (group) 20%
    3. Inventory and revenue management problem set (individual) 10%
    4. Checkpoint exercises* (individual) 10%
    5. Exam† (individual, closed book, in computer class) 40%


    *Checkpoint exercises: in most lectures, we will work on exercises in the second half of the lecture. Please bring your laptop computer to class. These exercises are meant to provide you with practical experience in applying the concepts from the class, as formative assessment. They are typically due a week after the lecture.

    †Please note that the exam needs to be passed to pass the course, i.e., you must receive at least 50% of points in the exam to pass the course regardless of the points in the other assignments.

    Extra points (above 100%) available for course feedback survey: 1 extra point for filling the survey.

    Group work is done in groups of 4-5 students.


    Readings

    There is no single textbook that covers the material for this course. We will use chapters from the following books:

    ·       (CT) Cachon, G., & Terwiesch, C. (2013). Matching supply with demand: an introduction to operations management, 3rd edition. McGraw-Hill Publishing.

    o   Available from Aalto library. If you have access to the 4th or 5th edition (2018, 2024), you can use that too, but chapter numbers may differ.

    ·       (CM) Chopra, S. & Meindl, P. (2016). Supply chain management: strategy, planning, and operation, 6th edition. Pearson.

    ·       (GHV) Gelman, A. & Hill, J. & Vehtari, A. (2023) Regression and other stories. Cambridge University Press.

    o   Available online at https://users.aalto.fi/~ave/ROS.pdf

    ·       (HA) Hyndman, R.J., & Athanasopoulos, G. (2021) Forecasting: principles and practice, 3rd edition. OTexts: Melbourne, Australia.

    o   Available online at https://otexts.com/fpp3.

    ·       (LM) Liberatore, M. & Miller, R. (2021) Supply Chain Planning: practical frameworks for superior performance, 2nd edition. Business Expert Press.

    o   Ebook available from Aalto library.

    ·       (P) Phillips, R.L. (2005). Pricing and revenue optimization. Stanford University Press.

    Ebook available from Aalto library. If you have access to the 2nd edition (2021), you can use that too, but chapter numbers may differ.

    We will complement the book chapters with cases and articles. See the readings for each session in the syllabus document.