Managing Your Supply Chain Using Microsoft Axapta: A Book ExcerptPart One: Sales and Operations Planning
Dr. Scott Hamilton - March 23, 2004

Introduction

A firm's sales and operations planning (S&OP) process starts with the definition of all demands for the firm's goods and services. It formulates game plans that drive supply chain activities to meet those demands. Hence, an effective S&OP game plan requires consideration of both demands and supplies. The nature of each product's game plan depends on the environment. The game plan may focus on stocked end-items in distribution and make-to-stock manufacturing environments. The game plan for a make-to-order manufactured product depends on the level of stocked components, the approach to defining product structure, and the need for direct linkage between production orders and sales orders. In this case, the game plan can be expressed as master schedules for stocked components and finishing (or final assembly) schedules for make-to-order items. Other considerations impact the nature of the game plans. A multisite environment may require consideration of inventory replenishment across a distribution network. Variations in operations such as projects and lean manufacturing also affect the game plan. The saleable products and services for many firms represent a mixture of environments...