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Describe the S&OP process. What are the major trade-offs that must be considered? (Page 145, Study Question #2) In chapter six of Supply Chain Logistics
Describe the S&OP process. What are the major trade-offs that must be considered? (Page 145, Study Question #2) In chapter six of Supply Chain Logistics Management By Donald Bowersox, David Closs, and M. Bixby Cooper, they describe Sales and operations planning(S&OP) As "a process that coordinates demand and supply plans across the organization. The process includes information sharing and accountability to systematically develop a common and consistent plan"(Bowersox, Closs, Cooper & Bowersox pg. 93). Planning system is continuously becoming irrelevant these days due to volatile market conditions. Market conditions are changing very rapidly and with this change, it's very difficult to plan everything in advance. The tradeoff that must be considered is related to the capacity and cost aspects as an increase in capacity increases the cost too as well as risk. so we have to maintain a proper tradeoff between the two so that the firm can get the maximum efficiency in its operations and get maximum profits in return
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