Optimization or Prioritization - Product Mix Decisions in Sales and Operations Planning
Abstract: Effective S&OP/IBP is critical for organizational goals of delivering profit and customer satisfaction by striking a balance between supply and demand. Multiple stakeholders are impacted by the success of the S&OP/IBP process. Master schedulers can define an effective master plan, customer service can provide reliable promised dates based on the master plan, and material planners can better align and utilize constrained materials to achieve the objectives of the S&OP/IBP process. One critical decision point in sales and operations planning is achieving the correct product mix. A correct product mix can significantly improve organizational goals, optimize resource and material capacity constraints, and enhance customer satisfaction through reliable order promising. This article discusses key drivers to optimize the product mix, the optimization process, tools for optimization, and key inputs for these tools and processes. The article provides insights into two different approaches and their impacts on product mix optimization.
Keywords: Sales and Operations Planning (S&OP), Integrated Business Planning (IBP), Resource Constraints, Optimization, Python programming language
How to Cite?: Yashodhan Shirolkar, "Optimization or Prioritization - Product Mix Decisions in Sales and Operations Planning", Volume 13 Issue 7, July 2024, International Journal of Science and Research (IJSR), Pages: 827-831, https://www.ijsr.net/getabstract.php?paperid=SR24716034948, DOI: https://dx.doi.org/10.21275/SR24716034948