Sales and Operations Planning (S&OP) is a powerful approach that seeks to synchronize demand, capacity, and inventory When implemented well, S&OP is an efficient process that ensures cost and inventory optimizations while improving service levels · At its heart S&OP – sometimes broadened to sales, inventory and operations planning (SIOP) – is a replanning process focused on changes from previous sales and production estimates Key variables include demand volume, demand mix, purchase prices, labor rates, labor productivity, vendor substitution, foreign exchange rates, and so onFactors responsible for imbalance between Supply & Demand Promotions New Product Introductions Packaging Changes Changing demand patterns Wreck havoc in
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What are the basic elements of the s&op process