The collection of processes associated with developing a projection of the realizable throughput and revenue for current and future periods. This is generally based on the comparison of projected demand ("the forecast") and available resources. Available resources include inventories and commitments from suppliers, factories and other parties. The supply chain operations plan should recognize the constraints and opportunities from:
Certain supply chains may not operate Make processes and therefore may not require a (Make) Production Plan.
Alternative names include: Sales & Operations Planning* (S&OP), Government agencies generally refer to the Budget (instead of the Plan).
Notes
S&OP is generally broader than the pure Plan Supply Chain Operations process. Consensus dictates that S&OP includes Plan Source, Plan Make and Plan Deliver processes as well as the Demand forecasting process - the latter is classified as a Sales related process, but trending to be managed by supply chain organizations.
Order Cycle Time
Planning Frequency
Order Fill Rate
Cash Conversion Cycle
Days of Inventory
Fixed Asset Turns
Supply Chain Costs
Cost of Goods Sold
Distribution Costs
Sales & Operations Planning
Forecast-to-Plan
Hierarchy
| ID | Name | Level | x | | P | Plan | 1 | P |
| P1 | Plan Supply Chain Operations | 2 | P1 |
| P101 | Gather Demand Forecast | 3 | P101 |
| P102 | Validate Demand Forecast | 3 | P102 |
| P103 | Gather Supply (Resources) | 3 | P103 |
| P104 | Balance Supply & Demand | 3 | P104 |
| P105 | Develop Supply Chain Plan | 3 | P105 |
| P106 | Publish Supply Chain Plan | 3 | P106 |
| P107 | Analyze Supply Chain Plan Deviations | 3 | P107 |
Workflow
Plan Supply Chain Operations Plan 510000 2 Plan, Planning, S&OP, Supply Chain Development of the supply chain operations plan: Overall volume and revenue projections, gaps and corrective actions to achieve revenue goals