Explain Sales and Operations Planning with example?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Explain Sales and Operations Planning with example?

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Step 1

SOP refers to the process where the sales department is well integrated with the operations department in order to ensure that the sales of the products are matched to the operations department of the organization and the demands of the customers are met. It believes in the proper integration of different departments and hence planning the sales and operational functions of the organization.

Step 2

ERP refers to the process where the resources of the enterprise are planned in a systematic manner and the inventory management is made easy for the organizations. ERP helps in deciding the level of inventory, reorder level, availability of resources and managing resources as per the requirements.

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