Responding to Predictable Variability in the Supply Chain

In Chapter 8, we discussed how companies use aggregate planning to optimally plan supply. Demand for many products changes frequently from period to period, often because of a predictable influence. These influences include seasonal factors that affect products (e.g., lawn mowers and ski jackets), as well as nonseasonal factors (e.g., promotions or product adoption rates) that may cause large, predictable increases or declines in sales. 

Faced with predictable variability, a company s goal is to respond in a manner that balances supply with demand to maximize profitability. The goal of sales and operations planning is to appropriately combine two broad options to handle predictable variability  

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