ABSTRACT
In this chapter, we cover the characteristics, applications and benefits of S&OP under the following headings:
• Background to S&OP • Definition • Key steps of S&OP • S&OP in service organizations • Collaborative planning forecasting and replenishment • Shift in performance criteria • Benefits of S&OP
The classical concept of S&OP is rooted to the MRPII (manufacturing resource planning) process. In the basic S&OP, the company operating plan (comprising
sales forecast, production plan, inventory plan and shipments) is updated on a regular monthly basis by the senior management of a manufacturing organization. The virtues, application and training of the S&OP have been promoted by Oliver Wight Associates (see Ling and Goddard, 1988) since the early 1970s.
