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The S & OP is a crucial component of supply chain management, which aligns the sales and production plans to create efficient responses to customers
The S & OP is a crucial component of supply chain management, which aligns the sales and production plans to create efficient responses to customers demands. The trade-offs that are undertaken in the process relate to demand forecasting using historical data. The other step requires the firm to make accurate supply and planning forecasts adequately. The trade-offs include balancing inventory costs versus stockouts to prevent excessive costs while reducing the risks of stockouts. There is also a need to ensure purity of demand and supply to prevent under or overproduction. Other factors need further attention to consumer expectations vis-a-vis lead times to ensure they meet customer needs while reducing costs (Bowersox et al., 2019). The trade-offs include reconciliation, executive reviews, cost efficiency, and customer service
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