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Designing a Sales and Operations Planning Process in a Make-to-Order Environment

Aveskamp, Maarten (2023) Designing a Sales and Operations Planning Process in a Make-to-Order Environment.

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Abstract:Volatility in the supply chain results in misalignment between supply and demand, leading to the development of proper strategies to deal with mismatches between supply and demand. Sales and Operations Planning is a powerful process to align supply and demand by linking sales plans with supply and operations planning. However, since S&OP processes have been used in a standardized way, it is not completely clear how to design the S&OP process in order to address companies’ different necessities, especially when adjusting the process to a make-to-order environment. This study investigates how to design a S&OP process in a MTO environment. Research was conducted as a case study in a Dutch company in the steel industry. Data was collected by interviewing 9 employees of this company. Academical literature and results from the interviews were combined to create a framework for designing S&OP in a make-to-order environment. This research showed that companies in a MTO environment cannot easily adopt a S&OP process, since the process needs to be reviewed first before implementation, so it will fit within company specific characteristics. Factors that should be reviewed in any case are the stakeholders of the process, execution of the process steps, time horizon of the process in general and measurement and analysis of the process as a whole and the process steps independently.
Item Type:Essay (Master)
Voortman Steel Machinery, Rijssen, The Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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