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S&OP
Supply Chain

S&OP (Sales and Operations Planning)

Sales and Operations Planning

Monthly cross-functional process that aligns demand, supply, inventory and financial plans at an aggregate level.

Examples

  1. 01The monthly S&OP meeting compares the demand plan of 42,000 units with a capacity of 38,000 and decides to build stock in the quiet months.
  2. 02In the S&OP process, sales, production, purchasing and finance review one set of numbers by product family before the executive meeting.
  3. 03When S&OP shows a capacity gap for the next quarter, management approves an extra shift instead of letting delivery times slip.

Related terms

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