Production and inventory-planning processes commonly used by companies, called sales & operations planning (S&OP), require predictable demand and supply to function properly. In the post-pandemic world, as uncertainty and disruptions have increased in frequency, this approach is no longer suited to the job.
A New Approach to Production and Inventory Planning
How to weather demand and price shocks, supply disruptions, shipping delays, and labor shortages.
September 27, 2023
Martí Sans/Stocksy
Summary.
Disruptions have become a way of life for manufacturers. But the production and inventory planning process that many companies, especially SMEs, use are not capable of handling the uncertainty. A new inexpensive method that was developed in research involving two companies can. It doesn’t have to be automated but can be.