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Question 171 - CSCP discussion

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Which of the following processes ensures that functional plans are consistent?

A.
Strategic planning
Answers
A.
Strategic planning
B.
Sales and operations planning
Answers
B.
Sales and operations planning
C.
Project planning
Answers
C.
Project planning
D.
Master scheduling
Answers
D.
Master scheduling
Suggested answer: B

Explanation:

Sales and Operations Planning (S&OP) ensures that functional plans are consistent by:

Aligning Cross-Functional Plans: It integrates plans from various functions such as sales, marketing, finance, and operations into a single coherent strategy.

Balancing Supply and Demand: By regularly reviewing and adjusting forecasts and production plans, S&OP ensures that supply capabilities align with market demand.

Financial Alignment: S&OP converts operational plans into financial terms, ensuring that budgetary constraints and financial goals are considered in operational decision-making.

Regular Review Cycles: Monthly or periodic reviews ensure that plans are adjusted based on the latest data, maintaining consistency and relevance across all functions.

'Sales and Operations Planning: The How-To Handbook' by John Dougherty and Christopher Gray

APICS, 'The Essentials of Sales and Operations Planning'

asked 16/09/2024
Karabo Mabeba
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