A Sales and Operations Planning (S&OP) process can help businesses align demand and supply for increased profitability.
But uncertainties in the supply chain can confound even the best planning. Demand forecasts are often off target. Product lead times vary. Production schedules change regularly. To make the S&OP process more robust, companies can buffer for these supply chain uncertainties by adding an inventory optimization step to the process, making it SIOP.
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