Executive Briefings

A Perspective from Asia on Real-World Constraints to Sales and Operations Planning

On the supply side, sale and operations planning (S&OP) most commonly fails when an unconstrained plan meets real-world constraints. But there are ways to moderate the operations plan in order to come up with a more predictable supply capability.

Supply constraints can be divided into two broad groups: material and process.  The operations planning objective is to position product and capacity in the right place, in the right quantity and at the right time.

However, depending on the way the organization measures constraints in the operations plan, there are several problems that can occur.

If you want S&OP to blend well with process constraints, the answer is a finite capacity model.

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On the supply side, sale and operations planning (S&OP) most commonly fails when an unconstrained plan meets real-world constraints. But there are ways to moderate the operations plan in order to come up with a more predictable supply capability.

Supply constraints can be divided into two broad groups: material and process.  The operations planning objective is to position product and capacity in the right place, in the right quantity and at the right time.

However, depending on the way the organization measures constraints in the operations plan, there are several problems that can occur.

If you want S&OP to blend well with process constraints, the answer is a finite capacity model.

Read Full Article