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Question 168 - CSCP discussion

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The most appropriate frequency for the sales and operations planning process typically is:

A.
weekly.
Answers
A.
weekly.
B.
monthly.
Answers
B.
monthly.
C.
quarterly.
Answers
C.
quarterly.
D.
annually.
Answers
D.
annually.
Suggested answer: B

Explanation:

The Sales and Operations Planning (S&OP) process typically operates on a monthly cycle to maintain a balance between strategic oversight and tactical execution. The monthly frequency allows:

Regular Updates: Market conditions, customer demand, and supply chain dynamics can change frequently. A monthly review ensures that plans are updated regularly to reflect the latest information.

Alignment of Functions: It provides a structured timeframe for different functions such as sales, marketing, finance, and operations to come together, review past performance, and plan for the future.

Decision Making: Monthly meetings help in making timely decisions that can affect inventory levels, production schedules, and resource allocations, keeping the organization agile and responsive.

'Sales & Operations Planning - Best Practices' by John Dougherty and Christopher Gray

APICS, 'The Essentials of Sales and Operations Planning'

asked 16/09/2024
Martijn Pollmann
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