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).
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.
|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|
|RS1||Order Cycle Time||1||RS1|
|RS2||Order Fill Rate||1||RS2|
|CO1||Supply Chain Costs||1||CO1|
|CO11||Cost of Goods Sold||2||CO11|
|AE1||Cash Conversion Cycle||1||AE1|
|AE12||Days of Inventory||2||AE12|
|AE2||Fixed Asset Turns||1||AE2|