A Model of Sales and Operations Planning: Example of Parameters Used and Decision-Making Process in a Japanese Industry

摘要

Many companies are facing a constant need to develop coordination between operational functions to quickly respond to customer requests. Thus, many practitioners are resorting to an established and integrated business management methodology, the Sales and Operations Planning (S&OP). The impact of the S&OP on operational performance was significantly demonstrated in many studies. However, it turns out that the theoretical studies made differ from what is actually applied, in addition to several parameters that are considered in the calculations especially with regard to Japanese industries. So, how is S&OP operated in this industry? What are the different calculation parameters used? and how are the results obtained and analyzed?In this paper, we will first present a short literature review of S&OP and its role and benefits. Then, we present a model of S&OP used in a wire harnesses Japanese industry. The goal is to show first a concrete example, where we present the various parameters considered in the calculations, and then we will explain how the resulting graphs are analyzed by managers and what could be done as corrective actions in case of gap existing.