Sales and Operations Planning (S & OP)

A step below the Strategic Business Plan, is Sales and Operations Planning. This is a technique used regularly (usually monthly) to integrate the plans of the Sales and Marketing departments with that of manufacturing and the supply chain.

The emphasis here is on monitoring the dynamic changes in the markets and industry, and then taking actions when necessary to revise the company’s production plans. This is more easily visualized by the diagram below. 1

Manufacturing and Supply Chain Services

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1  Introduction to Materials Management, fifth edition, JR Tony Arnold, Stephen N Chapman, 2004, Pearson Education, Inc.