Optimal product/customer mix selection as a strategic tool for cross-functional integration
Autor(a) principal: | |
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Data de Publicação: | 2011 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | JOSCM. Journal of Operations and Supply Chain Management |
Texto Completo: | https://periodicos.fgv.br/joscm/article/view/11161 |
Resumo: | Cross-functional integration is a necessity as operations become ever more important for the formulation and implementation of overall company strategy. Despite the abundance of theoretical studies extolling the advisability of smooth intra-company interfacing, the operations strategy literature has not been as prolific regarding tools to increase this desired integration. This paper develops an uncomplicated multi-period analytical model that helps increase coordination of the engineering, purchasing, marketing, and sales areas among themselves and with manufacturing by focusing on the overall company objective of maximizing contribution to profits. The paper begins describing the theoretical underpinnings of production and operations processes as they relate to the strategy of the firm, presents the model, and then expands its scope to include interfaces with other functional areas of the firm. The methodology is based on a two-stage multi-period optimization model for aggregate production planning encompassing component supply management and final assembly. This methodology expands the concept of Sales and Operations Planning (S&OP) through a linear programming model that uses cost and profit contribution data to select the optimal product and customer mix. The sensitivity of results to costing and pricing data leads to increased cross-functional coordination. An illustrative application improving the medium-term operations strategy of a Brazilian OEM manufacturer is presented. |
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JOSCM. Journal of Operations and Supply Chain Management |
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Optimal product/customer mix selection as a strategic tool for cross-functional integrationaggregate production planningS&OPcross-functional integrationproduct mixproduct/client mixlinear programmingCross-functional integration is a necessity as operations become ever more important for the formulation and implementation of overall company strategy. Despite the abundance of theoretical studies extolling the advisability of smooth intra-company interfacing, the operations strategy literature has not been as prolific regarding tools to increase this desired integration. This paper develops an uncomplicated multi-period analytical model that helps increase coordination of the engineering, purchasing, marketing, and sales areas among themselves and with manufacturing by focusing on the overall company objective of maximizing contribution to profits. The paper begins describing the theoretical underpinnings of production and operations processes as they relate to the strategy of the firm, presents the model, and then expands its scope to include interfaces with other functional areas of the firm. The methodology is based on a two-stage multi-period optimization model for aggregate production planning encompassing component supply management and final assembly. This methodology expands the concept of Sales and Operations Planning (S&OP) through a linear programming model that uses cost and profit contribution data to select the optimal product and customer mix. The sensitivity of results to costing and pricing data leads to increased cross-functional coordination. An illustrative application improving the medium-term operations strategy of a Brazilian OEM manufacturer is presented.FGV EAESP2011-06-26info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://periodicos.fgv.br/joscm/article/view/1116110.12660/joscmv4n1p51-70Journal of Operations and Supply Chain Management; Vol. 4 No. 1 (2011): January - June; 51-70Journal of Operations and Supply Chain Management; v. 4 n. 1 (2011): January - June; 51-701984-3046reponame:JOSCM. Journal of Operations and Supply Chain Managementinstname:Fundação Getulio Vargas (FGV)instacron:FGVenghttps://periodicos.fgv.br/joscm/article/view/11161/10132De Figueiredo, João NeivaMayerle, Sergio FernandoDonato, Felipe Simasinfo:eu-repo/semantics/openAccess2018-06-12T16:13:14Zoai:ojs.periodicos.fgv.br:article/11161Revistahttp://bibliotecadigital.fgv.br/ojs/index.php/joscmPRIhttp://bibliotecadigital.fgv.br/ojs/index.php/joscm/oai||joscm@fgv.br1984-30461984-3046opendoar:2018-06-12T16:13:14JOSCM. Journal of Operations and Supply Chain Management - Fundação Getulio Vargas (FGV)false |
dc.title.none.fl_str_mv |
Optimal product/customer mix selection as a strategic tool for cross-functional integration |
title |
Optimal product/customer mix selection as a strategic tool for cross-functional integration |
spellingShingle |
Optimal product/customer mix selection as a strategic tool for cross-functional integration De Figueiredo, João Neiva aggregate production planning S&OP cross-functional integration product mix product/client mix linear programming |
title_short |
Optimal product/customer mix selection as a strategic tool for cross-functional integration |
title_full |
Optimal product/customer mix selection as a strategic tool for cross-functional integration |
title_fullStr |
Optimal product/customer mix selection as a strategic tool for cross-functional integration |
title_full_unstemmed |
Optimal product/customer mix selection as a strategic tool for cross-functional integration |
title_sort |
Optimal product/customer mix selection as a strategic tool for cross-functional integration |
author |
De Figueiredo, João Neiva |
author_facet |
De Figueiredo, João Neiva Mayerle, Sergio Fernando Donato, Felipe Simas |
author_role |
author |
author2 |
Mayerle, Sergio Fernando Donato, Felipe Simas |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
De Figueiredo, João Neiva Mayerle, Sergio Fernando Donato, Felipe Simas |
dc.subject.por.fl_str_mv |
aggregate production planning S&OP cross-functional integration product mix product/client mix linear programming |
topic |
aggregate production planning S&OP cross-functional integration product mix product/client mix linear programming |
description |
Cross-functional integration is a necessity as operations become ever more important for the formulation and implementation of overall company strategy. Despite the abundance of theoretical studies extolling the advisability of smooth intra-company interfacing, the operations strategy literature has not been as prolific regarding tools to increase this desired integration. This paper develops an uncomplicated multi-period analytical model that helps increase coordination of the engineering, purchasing, marketing, and sales areas among themselves and with manufacturing by focusing on the overall company objective of maximizing contribution to profits. The paper begins describing the theoretical underpinnings of production and operations processes as they relate to the strategy of the firm, presents the model, and then expands its scope to include interfaces with other functional areas of the firm. The methodology is based on a two-stage multi-period optimization model for aggregate production planning encompassing component supply management and final assembly. This methodology expands the concept of Sales and Operations Planning (S&OP) through a linear programming model that uses cost and profit contribution data to select the optimal product and customer mix. The sensitivity of results to costing and pricing data leads to increased cross-functional coordination. An illustrative application improving the medium-term operations strategy of a Brazilian OEM manufacturer is presented. |
publishDate |
2011 |
dc.date.none.fl_str_mv |
2011-06-26 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://periodicos.fgv.br/joscm/article/view/11161 10.12660/joscmv4n1p51-70 |
url |
https://periodicos.fgv.br/joscm/article/view/11161 |
identifier_str_mv |
10.12660/joscmv4n1p51-70 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://periodicos.fgv.br/joscm/article/view/11161/10132 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
FGV EAESP |
publisher.none.fl_str_mv |
FGV EAESP |
dc.source.none.fl_str_mv |
Journal of Operations and Supply Chain Management; Vol. 4 No. 1 (2011): January - June; 51-70 Journal of Operations and Supply Chain Management; v. 4 n. 1 (2011): January - June; 51-70 1984-3046 reponame:JOSCM. Journal of Operations and Supply Chain Management instname:Fundação Getulio Vargas (FGV) instacron:FGV |
instname_str |
Fundação Getulio Vargas (FGV) |
instacron_str |
FGV |
institution |
FGV |
reponame_str |
JOSCM. Journal of Operations and Supply Chain Management |
collection |
JOSCM. Journal of Operations and Supply Chain Management |
repository.name.fl_str_mv |
JOSCM. Journal of Operations and Supply Chain Management - Fundação Getulio Vargas (FGV) |
repository.mail.fl_str_mv |
||joscm@fgv.br |
_version_ |
1798943730286198784 |