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Question 355 - CSCP discussion

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Which of the following measures would be an appropriate indicator of the marketing and sales organization's support of the sales and operations planning (S&OP) process?

A.
Finished goods inventory as a percent of planned inventory
Answers
A.
Finished goods inventory as a percent of planned inventory
B.
Percent of product introductions completed on schedule
Answers
B.
Percent of product introductions completed on schedule
C.
Total revenue as a percent of planned revenue
Answers
C.
Total revenue as a percent of planned revenue
D.
New customers as a percent of total customers
Answers
D.
New customers as a percent of total customers
Suggested answer: C

Explanation:

S&OP Process: The Sales and Operations Planning (S&OP) process aims to balance supply and demand, aligning production with market requirements.

Revenue Metric: Total revenue as a percent of planned revenue is a direct measure of how well the marketing and sales organization supports the S&OP process by achieving sales targets.

Other Metrics: While finished goods inventory, product introductions, and new customers are important, they do not directly indicate how marketing and sales efforts align with the overall revenue goals set in the S&OP process.

Wallace, T. F., & Stahl, R. A. (2008). 'Sales & Operations Planning: The How-To Handbook.' T. F. Wallace & Company.

Lapide, L. (2004). 'Sales and Operations Planning (S&OP) Mindsets.' Journal of Business Forecasting, 23(3), 17-19.

asked 16/09/2024
josh hill
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