S&Op Demand Planning Definition
S&Op demand planning is the process of forecasting future customer demand and aligning it with the company’s production capacity. The goal of S&OP demand planning is to ensure that the company can meet customer demand while maximizing profits.
The first step in S&OP demand planning is to forecast customer demand. This forecast should be based on historical data, market trends, and customer feedback. Once customer demand has been forecasted, the company must then determine how much production capacity it has available to meet this demand.
If there is a mismatch between customer demand and production capacity, the company must make adjustments to its plans. These adjustments can include changes to the product mix, changes to production schedules, or price changes. Once the company has made all necessary adjustments, it can then finalize its plans and implement them.
