Abstract
This paper suggests a modularized sales and operations planning (S&OP) framework, consisting of content and process. The framework’s content is based on a typology of decoupling points in which the effect of decoupling points on the decision variables in S&OP is studied. The framework’s process takes a step back and addresses the need for a more elaborate design to precede the operational use of S&OP content for different production contexts. The framework supports both process industries (PIs) and discrete manufacturing industries (DIs), and recognizes their specific requirements and reflects them in their S&OP. The differentiating characteristics of PIs and DIs are emphasized through three different decoupling points, namely: discretization decoupling point, control mode decoupling point, and customer order decoupling point. The suggested framework aims to fill the gap in the literature regarding the lack of aggregate planning processes that match the PIs’ specific requirements by reflecting the differentiating characteristics of PIs in S&OP.
Highlights
Process industries (PIs) and discrete manufacturing industries (DIs) have different characteristics regarding their production processes
The different key properties of the production processes imply that DIs and process industries (PIs) require different planning and control systems, and that the common discrete production of PIs and DIs can help in identifying similarities between these two types of CONTACT Sayeh Noroozi sayeh.noroozi@liu.se
The purpose of this paper is to outline a framework for sales and operations planning (S&OP) that is applicable to PIs as well as DIs and to cover both the content that is the constructs of the framework, and the process used for its implementation, including both the design phase and the actual performance of the monthly S&OP
Summary
Process industries (PIs) and discrete manufacturing industries (DIs) have different characteristics regarding their production processes. There are, some properties that are similar and Abdulmalek, Rajgopal, and Needy (2006) developed a concept showing that PIs can be seen as hybrids, meaning that they usually deploy both continuous production and discrete production. DIs only deploy discrete production and do not use continuous production, whereas PIs may deploy both types of production processes in a hybrid fashion. The different key properties of the production processes imply that DIs and PIs require different planning and control systems, and that the common discrete production of PIs and DIs can help in identifying similarities between these two types of
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