A more Resilient Supply Chain from Optimised Operations PlanningDuring times of sudden upheaval, companies must quickly ramp down operations and thenramp up again once demand bounces back, adapt their execution, and revisit long$-$term plans.The supply chain has a special role to play, as companies rapidly shift their focus from cost$-$effectiveness to maximized throughputall with the same assets and infrastructure.Optimization in operations planning involves determining the optimal choices for a set ofdecisions in a given business environment and business target. This type of optimizationgenerally works best with prescriptive models that provide the ideal set of decisions as anoutput. The elegance of optimization is its ability to adapt to not only changing businessenvironments but also shifts in the business targetfor example, from minimum cost tomaximum throughput, highest yield, zero environmental impact, or a combination of multiplefactors.Elevate customer centricity by enabling a pull principle for demand$-$driven operationsCustomer$-$centric thinking is a foundational element for any type of operations planning. Toolsand processes must be able to quickly translate demand into sequence and volume ofproduction units and share this information with individual production sites. Optimization toolsand processes can make these decisions rapidly and objectively, enabling both automatedplan adjustments based on changing customer demand and faster responses by contactcenter agents to customer requests. Satisfying those requests can have a significant impacton operations. A commodity metals company was able to accelerate its decision$-$makingprocess and thus more quickly react to urgent customer requests resulting from demandfluctuations caused by rapidly changing spot prices.Bridge the gap between long$-$term planning and day$-$to$-$day operationsShort$-$term plans are typically shaped by current constraints, while long$-$term plans depend onoutside factors that are likely to change. Effective operations planning addresses the in$-$between period, in which value can be lost in the gap between tactical vision and concreteimplementation. Optimization tools and processes can translate mid$-$ and long$-$term plans intodetailed operational schedules, automatically accounting for dynamic conditions and complexoperational constraints while allowing users to refine and explore possibilities. The gap isbridged in the other direction by feeding information on actual operations and deviations fromcontrol$-$tower monitoring back to optimization or simulation tools to continually minimize anyloss in value.Improve information flows between operations and marketing and salesOrganizations need to enable a consistent flow of information amongstakeholders. Optimization tools and processes can be added to improve decision making. Atangible example of this interplay can be a sudden change in production capacity due to anunforeseen dumper breakdown. Integrated planning tools ensure all relevant stakeholders areaware of this change, but only optimization tools will actively steer and synchronize thedecisions of the entire organization toward the ideal target in this new environment. Actionscould include modified marketing and pricing of the respective products or the realignment ofthe supply chain. Comprehensive control$-$tower dashboards are then used by teams fromvarious functions to support real$-$time decision making.Understand true operational constraints by dissecting the infeasible plansThe exercise of identifying and avoiding infeasible plans often leads planners to review andadjust their operations. This infeasibility can come in the form of forced stoppages whenoperators are tasked with following an impossible plan or situations in which plans are unableto meet all known operational constraints. Optimization tools can then progressively integrateall these constraints into actual operations planning, thus providing consistently feasiblesolutions. In this way, the impact of optimization tools results in higher adoption, as theyreduce the overall frustration level across the organization associated with these infeasiblesolutions.In a world characterized by increasing volatility and major disruptions, the maturity ofoperations planning has the potential to increase the performance spread between firstmovers and laggards. So far, bigger corporations have taken the lead in implementingapproaches to optimize their operations planning, given the resources and capabilitiesrequired. Whether optimization is within the reach of all companies is still an open question.$($Source: McKinsey & Company $2022)1\mathrm{.}1$ In a world characterized by increasing volatility and major disruptions, the maturity ofoperations planning has the potential to increase the performance spread between firstmovers and laggards$\mathrm{.}1\mathrm{.}1\mathrm{.}1$ With the many disruptions and volatility indicated in the case study, manyorganisations hold inventory in larger quantities. Discuss the various reasons thatcompanies tend to hold inventory $(12)1\mathrm{.}1\mathrm{.}2$ Holding stock or inventory results in carrying costs tied up in the inventory. Discuss thecosts associated with holding inventory. $(8)1\mathrm{.}2$ With reference to the case study, it is important to bridge the gap between long termand day to day planning.Discuss the two types of planning that is required when planning production. Includethe short$-,$ medium$-$ and long$-$term times frames in your discussion $(20)$Question $1$ word count: $2000$ wordsQUESTION TWO $[30]2\mathrm{.}1$ Production plans are based on a basis of make$-$to$-$stock $($MTS$)$ or make to order$($MTO$).$ Discuss the three areas that make up the make to order $($MTO$)(10)2\mathrm{.}2$ The production layout must be arranged to reduce waiting and to increase theefficiency of the movement of material and manufacturing of the product within thewarehouse. Describe any six factors that contribute to an efficient warehouse $(12)2\mathrm{.}3$ Describe the four inventory systems that improve the flow of materials through thelogistical system $(8)$Question $2$ word count: $1500$ wordsGuidelines This is a research$-$based assignment and requires evidence of research. Answer in an essay format where necessary: Introduction, body paragraphs andconclusion Students must answer the questions fully but concisely and as directly as possible, usingsufficient research and application. All research should be referenced, using the Harvardreferencing protocols. The mark allocation is an indication of the weight and the length of the question. The responses must be your own work. Plagiarism is a form of academic dishonesty andwill not be tolerated. Follow the word count at the end of the question.Format: Ariel $111\mathrm{.}5$ spacingEnd of assignment questions