Problem regarding the strategic capacity planning

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1. Some people have argued that the process of developing the sales and operations plan is as important as the final numbers. How could this be?

2. How does S&OP differ from strategic capacity planning? From detailed planning and control? What role does S&OP play in the overall planning activities of an organization?

3. In general, under what conditions might a firm favor a level production plan over a chase plan? A chase produc- tion plan over a level plan?

4. Services, in general, cannot put "products" in inventory to be consumed at some later time. How does this limit service firms' S&OP alternatives?Why is it important to update the sales and operations plan on a regular basis, using a rolling time horizon approach?

5. Ling suggests that superior S&OP planning can actually provide a firm with a competitive advantage. Do you agree? Can you think of any organizations that might benefit from better sales and operations planning?

6. What are the advantages to a firm of coordinating its S&OP process with key supply chain partners? What are the potential drawbacks?

Reference no: EM13967833

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