The value of sales and operations planning in oriented strand board industry with make-to-order manufacturing system: Cross functional integration under deterministic demand and spot market recourse
“…S&OP has received a significant research interest recently. In particular, Feng et al [2008] propose several integer programming formulations that represent different levels of cross-functional integration. They compare these models on data obtained from a firm operating in oriented strand board industry to estimate potential financial impact of S&OP before actual implementation.…”
Section: Sandop Process At Vestel Electronicsmentioning
We investigate the sales and operations planning (S&OP) problem at Vestel Electronics, a major television manufacturer located in Turkey. The company's product portfolio is very wide due to a large number of configuration options, and changes rapidly due to technological advances. Demand volatility is high and materials procurement requires long lead times. Hence, the S&OP process is critical for efficient management of company resources and its supply chain as well as customer satisfaction. We devise
“…S&OP has received a significant research interest recently. In particular, Feng et al [2008] propose several integer programming formulations that represent different levels of cross-functional integration. They compare these models on data obtained from a firm operating in oriented strand board industry to estimate potential financial impact of S&OP before actual implementation.…”
Section: Sandop Process At Vestel Electronicsmentioning
We investigate the sales and operations planning (S&OP) problem at Vestel Electronics, a major television manufacturer located in Turkey. The company's product portfolio is very wide due to a large number of configuration options, and changes rapidly due to technological advances. Demand volatility is high and materials procurement requires long lead times. Hence, the S&OP process is critical for efficient management of company resources and its supply chain as well as customer satisfaction. We devise
“…This way, this research have made an attempt to synthesize important S&OP elements, also known as success factors, to gather S&OP key aspects in one maturity model. The most used metric is "integrated planning" cited by Ventana Research (2006), Grimson & Pyke (2007), Feng et al (2008, Cecere et al (2009) and Wagner et al (2014). This can be a good indicator that this may be a key issue in evolving in S&OP process.…”
Section: Brief Discussion About Main Resultsmentioning
confidence: 99%
“…Various evaluation models of S&OP maturity have been proposed by different authors (Wing & Perry, 2001;Lapide, 2005b;Ventana Research, 2006;Grimson & Pyke, 2007;Feng et al, 2008;Viswanathan, 2009;Cecere et al, 2009). Among these S&OP maturity models, the model proposed by Grimson & Pyke (2007) stands out since it presents a broader approach.…”
Section: Sandop Maturity Modelsmentioning
confidence: 99%
“…The process has the intention to balance demand and supply and link strategic and operational plans of the company (Wallace, 2004;Muzumdar & Fontanella, 2006;Lapide, 2005a;Feng et al, 2008;Association for Operations Management, 2009;Wight, 2009;Voluntary Interindustry Commerce Solutions, 2010;Thomé et al, 2012a), in which decisions are made at a tactical level, and which mainly covers middle and top management (Moon, 2006;Ivert & Jonsson, 2010;Lapide, 2011). S&OP has become a key process in organizations since it allows a holistic planning, balances demand and supply and integrates organizational functions, as well as strategic and operational plans (Affonso et al, 2008;Tuomikangas & Kaipia, 2014;Ivert et al, 2015a, b).…”
A successful S&OP implementation can bring many benefits to organizations, and after its implementation, the S&OP process can evolve and reach higher levels of maturity. Considering that, only through a measurement system, goals and benefits can be achieved, thus, it is essential to assess S&OP maturity level. Many papers on literature adopt a quantitative perspective on S&OP, but just few of them deal with uncertainty present in S&OP decision-making, such as maturity model assessment process that carries subjectivity and uncertainty. Thus, this study proposes a decision making model based on fuzzy theory to evaluate and to categorize S&OP maturity levels and to suggest strategies to increase S&OP maturity. A pilot application was conducted in two manufacturing organizations that have implemented the S&OP process. The results, according to the performance presented, suggest different actions must be taken in terms of ensuring enablers to S&OP implementation.
KeywordsSales and operations planning. Maturity model. Fuzzy inference. Fuzzy set theory.
“…In the decoupled version of the problem approached in this article, we give insights in the case when both parts are not aligned. This has been a research topic in other industrial contexts (see, for example, the problem of a furniture company by Ouhimmou et al [20], and the problem of an oriented strand board manufacturing company by Feng et al [10] and [11]). …”
We study a problem of tactical planning in a divergent supply chain. It involves decisions regarding production, inventory, internal transportation, sales and distribution to customers. The problem is motivated by the context of a company in the speciality oils industry. The overall objective at tactical level is to maximize contribution and, in order to achieve this, the planning has been divided into two separate problems. The first problem concerns sales where the final sales and distribution planning is decentralized to individual sellers. The second problem concerns production, transportation and inventory planning through refineries, hubs and depots and is managed centrally with the aim of minimizing costs. Due to this decoupling, the solution of the two problems needs to be coordinated in order to achieve the overall objective. In the company, this is pursued through an internal price system aiming at giving the sellers the incentives needed to align their decisions with the overall objective. We propose and discuss linear programming models for the decoupled and integrated planning problems. We present numerical examples to illustrate potential effects of integration and coordination and discuss the advantages and disadvantages of the integrated over the decoupled approach. While the total contribution is higher in the integrated approach, it has also been found that the sellers' contribution can be considerably lower. Therefore, we also suggest contribution sharing rules to Email addresses: mario.guajardo@nhh.no (Mario Guajardo), martin.kylinger@liu.se (Martin Kylinger), mikael.ronnqvist@nhh.no (Mikael Rönnqvist) Preprint submitted to NHH Discussion Series March 20, 2012 achieve that both the company and sellers get a better outcome under the integrated planning.
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