Sales department:

The sales department plays a crucial role in forecasting customer demand. They provide input to
the aggregate plan by estimating future sales volumes, identifying seasonal trends, logical overall
unit for measuring sales and output and forecast of demand for an intermediate planning period
in these aggregate terms. Their collaboration with other departments helps align production and
inventory levels with anticipated demand. (1)

Procurement department:
The operations department plays a key role in aggregate planning by managing inventory,
logistics, and operational efficiency. It focuses on the efficient management of bookstore
operations, including receiving, shelving, and restocking books, as well as managing the
checkout process. They collaborate with the sales and marketing department to understand
demand patterns and adjust staffing levels, shelf space allocation, and reordering frequencies
accordingly. It responsible for determining relevant costs. Considering factors like storage costs,
shipping logistics, and order fulfillment capabilities.
Involved in negotiations with publishers or distributors for favorable terms, such as bulk
purchasing discounts or payment terms. (2)
Base book price from the publisher: $3.75.
Additional charge for customized orders (over time): $4.5.
Price for books from another merchant (Subcontractor): $5.
Backorder: $2.

Logistic and supply chain department:

The logistics process begins when the operations department places orders with publishers or
distributors based on inventory needs and demand forecasts. Efficient communication channels
with suppliers are crucial for timely order placement. Books need to be appropriately packaged
for shipment, considering factors like book size, fragility, and shipping requirements.

Shipping and Distribution: Logistics collaborates with aggregate planning to ensure timely
transportation and distribution of books. Delivery schedules and lead times are considered in
the plan.

Last-Mile Delivery: Logistics aligns with aggregate planning to optimize last-mile delivery,
ensuring books reach customers efficiently.

In order to control the availability of goods through time and space. Inventory models in
principle rely on the “logistical” characteristics of individual items (product value and packaging
density, shipment size, lead-time, demand variability). (3)

 Costs Associated:
  Shipping cost from the publisher: $0.25
 Shipping cost from another merchant (subcontractor): $0.5

 Efficiency:
a. Optimize shipping processes to minimize costs.
b. Consider outsourcing shipping to reduce operational expenses.

Aggregate planning in supply chain management include aggregate planning considers the
entire supply chain network, including suppliers, manufacturers, distributors, and retailers. Here
are key aspects of aggregate planning in supply chain management:

 Solid Demand Forecast - It is important to anticipate demand for your product before
you can plan your supply ordering. Using historical data as well as industry trends and
forecast, you are able to accurately predict demand for your products for upcoming
months. Your forecast will tell you how much you need to product in order to meet
demand in order for you to know that quantity of supplies you will need to maintain
productivity.
 Production Capacity - The ability to produce depends on machinery, work staff and
efficiency. You are able to evaluate your production department to accurately determine
how many products you can reasonably produce during the period that you are planning
for. This could end up being less than demand. Utilizing your production ability to set
goals for producing products that are realistic. Allow for personnel shortages and
machinery maintenance.
 Limitations on Capital - No matter what quantity of supplies you would like to order,
you need to take your cash into account. You may be limited by what you can afford. If
you plan to borrow to buy supplies, include the interest costs in your estimates of the
profits you will make from the products you manufacture. In short, make sure you have
the capital to purchase the supplies you need.
 Supplier Collaboration: Collaboration with suppliers is vital for ensuring the
availability of raw materials and components in line with production schedules.
Supplier lead times and order quantities are considered in the planning process.
 Distribution and Transportation Planning: Planning includes determining optimal
distribution and transportation strategies to move products efficiently through the supply
chain.
Evaluating transportation costs, lead times, and delivery schedules is crucial. (4)
Inventory Management:
Aggregate planning is a systematic, data-driven approach to forecasting and planning that helps
organizations manage their inventory risks.
inseparable relationship as inventory levels directly impact aggregate planning decisions.

Stock Levels: Aggregate planners rely on accurate inventory data to adjust production levels.
Inventory managers share real-time data to ensure optimal stock levels.
Ordering Frequency: Aggregate planning decisions influence the frequency of inventory
restocking. Inventory management aligns stock replenishment with the aggregate plan to avoid
stockouts or overstocking.
Among retail practitioners, there is growing interest in ``inventory management'', which help
stores make the most of merchandise assortments and shelf space. Best practices in retail
inventory management call for a proper balance between inventory and service levels,
recognition of the importance of merchandise availability, and accurate store sales/inventory
data.
Effectively managing inventory involves overseeing the stock of books, tracking sales, restocking
efficiently, and optimizing overall operational efficiency. (5)

 Costs Associated:

 Storage cost: $1 per book.

 Impact on Pricing:

a. Incorporate storage cost into the overall book price.

b. Ensure pricing covers storage costs without compromising competitiveness.

Marketing department:
The marketing promotional activities would be planned by subjective and intuitive judgment,
which is normally planned in order to achieve the possible highest sales revenue or profit. After
making the decision in marketing promotion, the demand for each period would be forecasted.
Then it is used as the input data for aggregate production planning. Aggregate planners work
closely with the marketing department to understand current market trends, promotional
activities, and upcoming campaigns. Marketing provides sales projections based on advertising
efforts, book launches, and other promotions, influencing the aggregate plan's demand forecasts.
Marketing initiatives and promotions are integrated into the aggregate plan to align production
and inventory levels with anticipated spikes in demand. (6)

R&D department:
The R&D department is primarily concerned with the generation of new technological
knowledge and applying this knowledge to design new products Both sets of activities need to be
aligned to share relevant information and to develop a new product that meets the market
requirements and generates satisfactory financial returns to the store.

New Product Development:

 Explore opportunities for exclusive book releases or limited editions.

 Collaborate with authors for special editions or signed copies.

Technology Integration:

 Develop a user-friendly mobile app for easy browsing and purchasing.

 online ordering systems

Data Analytics:

 Utilize data analytics to understand customer preferences and buying patterns.

 Implement machine learning algorithms to provide personalized book recommendations.

Market Trends:

 Stay updated on emerging trends in the publishing industry.

 Monitor reader preferences and adapt offerings accordingly.

Sustainability and Social Responsibility:

 promoting recycled materials and reducing waste.

 supporting local publishers and authors.
 R&D can also identify opportunities for the bookstore to contribute to the community,
such as hosting events, book clubs, or supporting literacy programs.

Overall, R&D in a bookstore aims to drive innovation, improve customer satisfaction, and
position the store as a modern and relevant destination for book lovers in an increasingly digital
age. (6)

References
1. HEIZER, JAY. Operations Mangement. TWELFTH EDITION.

2. Martin K. Starr, Sushil K. Gupta. The Routledge Companion to Production and Operations
Management. Fifth edition .
3. Biswajit Mahanty, Felix T. S. Chan. Aggregate procurement, production, and shipment planning.

4. How the Importance of Aggregate Planning can achieve Supply Chain Sustainability? [Online]
[Cited: NOV 19, 2023.] https://www.linkedin.com/pulse/what-aggregate-planning-how-importance-
can-achieve-supply-chain-.

5. Relationships between inventory, sales and Aggergate plan. Dubelaar, Chris.

6. Sales, Marketing, and Research-and-Development Cooperation across New Product Development

Stages: Implications for Success. Holger Ernst, Wayne D. Hoyer, and Carsten Rübsaamen.