Incorporating Supply and Resource Constraints

One of the biggest challenges in the S&OP process is addressing supply and resource constraints that affect how much product can be supplied in a limited time frame. Supply constraints are usually unanticipated shortages in raw material or parts that preclude supplying the desired quantity of all products. Resource constraints can take a number of forms including limits on available plant or equipment capacity, manpower, or working capital. Virtually every company experiences supply and resource constraints regularly, even if the specific constraints that arise may not always be the same.

The basic difficulty in coping with supply and resource constraints is that it is rarely obvious which products ...

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