Sales and Operations Planning
Part Two: Common Scenarios
Dr. Scott Hamilton - December 12, 2003

Common Scenarios for Sales and Operations Planning

The nature of a sales and operations planning (S&OP) game plan depends on several factors, such as the need to anticipate demand and the item's primary source of supply. Consideration of these factors can be illustrated with four common scenarios. The first two scenarios reflect stocked end-items, while the next two scenarios reflect make-to-order manufactured products. Replenishment of stocked material could be based on forecasted demand or order point logic, but the following explanations focus on the use of forecasted demand...