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Sales and Operations Planning
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Demand Planning
The process of forecasting customer demand to drive the supply chain management process.
Supply Planning
Involves the allocation of resources to meet the demands forecasted by demand planning.
Executive Review
Senior management's evaluation of the S&OP strategy to ensure alignment with corporate objectives.
S&OP Cycle
The series of steps that are regularly repeated on a monthly or weekly basis as part of S&OP.
Consensus Demand Plan
An agreed-upon forecast that incorporates input from multiple functions within the organization.
Pre-S&OP Meeting
An internal meeting before the executive S&OP meeting where mid-level managers discuss potential issues and scenarios.
Production Plan
A schedule for manufacturing operations that indicates the quantity and timing of production.
Inventory Policy
Guidelines for maintaining optimal inventory levels to meet service levels while minimizing costs.
Scenario Planning
The process of creating and analyzing hypothetical situations to anticipate potential future conditions.
Gap Analysis
The comparison of actual performance with potential or desired performance.
New Product Introduction (NPI)
The process of bringing a new product to the market and integrating it into the S&OP process.
Integrated Business Planning (IBP)
An advanced form of S&OP that integrates diverse business processes to align operations with financial performance.
Master Production Schedule (MPS)
A detailed plan that specifies how many of which products need to be produced and when.
Rough-Cut Capacity Planning (RCCP)
A technique used to check the feasibility of the Master Production Schedule against key capacity constraints.
Demand-Supply Balancing
The process of matching available capacity and inventory with customer demand to create a balanced plan.
Order Fulfillment
The complete process from receiving customer orders to delivering the goods and services.
Financial Planning
The process of estimating the financial outcomes of an S&OP plan.
S&OP Metrics
Key performance indicators (KPIs) used to evaluate the effectiveness of the S&OP process.
Continuous Improvement
An ongoing effort to improve products, services, or processes in S&OP.
Product Portfolio Management
The process of managing a company's collection of products to optimize performance and align with the business strategy.
Sales Planning
The process of determining the sales strategies and efforts required to meet the sales forecast.
Resource Allocation
The process of assigning available resources in the most effective way to support the S&OP plan.
Market Intelligence
The information gathered about current market trends, competitors, and customers to inform the S&OP process.
S&OP Meeting
A regular cross-functional meeting focused on achieving alignment and coordination across the various stakeholders of the S&OP process.
Collaboration & Communication
The continuous interaction between different departments to ensure a synchronized approach to achieving the S&OP goals.
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