Sales & Operation Plan with Master Production Schedule Essay

Sales & Operation Plan with Master Production Schedule Essay

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Sales and operations planning (S&OP) is a process to help give better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business. S&OP process is built on teamwork between sales, operations, finance, and product development. It is designed to help a company get demand and supply in balance and to keep them in balance over time. Balancing supply and demand is essential to running a business well. Some companies described S&OP as aggregate planning process.
The term sales and operations planning has been used by many firms or companies to refer to the process that helps them keep demand and supply in balance. In operations management(OM), we have conventionally called this process aggregate planning. The sales and operations planning process consist of a chain of meetings, concluding with a high level meeting where key midway decisions are made. The ending goal is conformity between different departments on the best course of action to achieve the optimal balance between supply and demand . The idea is to put the operational plan in line with the business plan. In other words utilizing the cross functional forecast review team, to examine the changing dynamics that are impacting business strategies, tactical planning, manufacturing and profitability (Kirk & Chase 1996).
S&OP balance must occur at an aggregate level and at the detailed individual product level. By aggregate we mean at the level of major groups of products. Over time, we need to ensure that we have enough total capacity. Since demand is often quite energetic, it is important to monitor the expected needs in the future. When forecasting or planning this...


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...turing firms would not have the abilities to successfully reach its goal in producing a good product that would gain its competitive advantage over their competitors.



References
Gallagher, G. R. (1980). How to develop a realistic master schedule. Management Review, 69(4), 18. Retrieved from EBSCOhost.


Galluci, J. A. (2008). HOW TO MITIGATE RISK AND DRIVE ALIGNMENT WITH S&OP. Journal of Business Forecasting, 27(1), 4-9. Retrieved from EBSCOhost.


Kirk, L., & Chase, C. W. (1996). MANY PLANS, ONE REALITY; WHIS IS THE REAL FORECAST?. Journal of Business Forecasting Methods & Systems, 15(3), 22, , Retrieved from EBSCOhost.

Zhao, X., & Lee, T.S. (1996). Freezing the master production schedule in multilevel material
Requirements planning systems under deterministic demand. Production Planning & Control, 7(2), 144. Retrieved from EBSCOhost.



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