ABSTRACT
This chapter looks at the principles and application of sales and operations planning (S&OP), the benefits that can be derived from S&OP and the application of S&OP principles to the generic supply chains. For those supply chain types operating in a less certain environment, agile and fully flexible, the S&OP framework provides a powerful method of managing and allocating capacity to maximize customer service and financial and humanitarian outcomes. S&OP is easier to implement with the continuous replenishment and lean types that is, those servicing customer segments with medium to high predictability of demand, although it can add significant value to agile and fully flexible supply chains as well. The degree of cross-functional collaboration required to drive an effective S&OP provides significant value in lean supply chains as it tends to reduce the impact of the functional silos and administration culture of the organizations.
