Advanced sales and operations planning framework in a company supply chain

Abstract

Traditional sales and operations planning (S&OP) focuses on balancing company supply and demand, and is utilised utilised to align plans that support a business-strategic goal. An obvious drawback of previous decision models is their lack in considering the supply chain network. This article proposes a new global S&OP planning framework to integrate four supply chain stages of demand, purchasing, production and transportation with different planning strategies. Model applicability is tested by a real life case. Several simulation scenarios are conducted to evaluate the effectiveness and efficiency of the proposed model and heuristics. This study adopts the integrated method as a decision support tool, thereby enhancing coordination between financial and physical activities.

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