1. What is the primary focus of the Sales & Operations Planning (S&OP) process?
2. What is the primary function of aggregate products in Sales and Operations Planning (S&OP)?
3. How do the level and chase S&OP strategies primarily differ in managing production rates and inventory?
Sales & Operations Planning — definition?
A process aligning demand and supply strategies.
Aggregate products — role?
Simplify planning by grouping similar products.
Level strategy — function?
Fix production rate, use inventory to meet demand.
Chase strategy — difference?
Vary production to match demand, minimal inventory.
Cost comparison — level vs chase?
Level has higher inventory costs; chase has higher resource adjustment costs.
Hybrid strategy — purpose?
Combine level and chase for flexible planning.
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