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Question 230 - CSCP discussion

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A company recently faced an increase in backorders. The company's marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity. Which of the following processes will help to solve this type of problem in the future?

A.
Sales and operations planning (S&OP)
Answers
A.
Sales and operations planning (S&OP)
B.
Advanced planning and scheduling (APS)
Answers
B.
Advanced planning and scheduling (APS)
C.
Supplier relationship management (SRM)
Answers
C.
Supplier relationship management (SRM)
D.
Customer relationship management (CRM)
Answers
D.
Customer relationship management (CRM)
Suggested answer: A

Explanation:

Sales and Operations Planning (S&OP) is a process that aligns the sales, marketing, operations, and finance departments to create a unified plan for meeting customer demand. The key objectives of S&OP are to balance supply and demand, align the company's strategic plans with its operational capabilities, and improve communication across departments. In the given scenario, the marketing department's sales promotion led to an increase in backorders because the purchasing and planning departments were not informed. Implementing an S&OP process would ensure that all departments collaborate and share information regularly, helping to prevent such issues in the future by synchronizing promotional activities with production and inventory planning.

Wallace, T. F., & Stahl, R. A. (2008). Sales & Operations Planning: The How-To Handbook. T. F. Wallace & Co.

Grimson, J. A., & Pyke, D. F. (2007). Sales and Operations Planning: An Exploratory Study and Framework. The International Journal of Logistics Management.

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asked 16/09/2024
Rekik Tesfaye
37 questions
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