Structure of the S&OP Process
Steps in the S&OP process
While the precise nature and set of activities comprising the S&OP process will vary substantially depending on many specific aspects of a company—the nature of demand and how customers are served, the lead time for products and the kinds of supply constraints it typically confronts—an S&OP process should generally include the following steps:
- Estimate demand variability. Using approaches outlined earlier, this step can be done using forecast accuracy data, historical sales, or obtaining bounds on forecasts from the forecast process. This step can be assigned to the forecasting function of the organization or to S&OP personnel.
- Generate candidate sales and operations plans based on the ...