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Sales and Operations Planning - PowerPoint PPT Presentation


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Sales and Operations Planning. Contents for Sales and Operations Planning. Core concepts of SOP. SOP Process. Modifying SOP. New paradigm. Case studies. Core concepts of SOP. Marketing planning, Financial planning, and Operations planning. Core concepts of SOP.

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Presentation Transcript
slide2

Contents for Sales and Operations Planning

Core concepts of SOP

SOP Process

Modifying SOP

New paradigm

Case studies

slide3

Core concepts of SOP

  • Marketing planning, Financial planning, and Operations planning
slide4

Core concepts of SOP

  • Balance between Demand and Supply
  • Volume decision then, Mix decision for product family
  • Early warning system based on actual and forecasted demand
  • 6 to 12 family groups
  • Without SOP, costs incur: extra inventory, poor customer service, excess capacity, long lead time, panic operation, poor response to opportunity
slide6

SOP Process

  • Involves making decisions on each product family concerning changes to the sales plan, operations plan, and inventory
  • Begins shortly after the month’s end and continues for some day
  • Seeks low cost operations plan: chase vs. level strategy
slide9

Modifying SOP

In many companies, relevant cost data are not readily available

slide11

New paradigm

  • Stick to the plan: mfg., eng., sales, finance, etc.
  • Overselling just as bad as underselling
  • Strategic planning: competitive strength, life cycle, cash flow,
  • Flat Panel Display example in 2011 world market