During the sales and operations planning (S&OP) process, which of the following tasks is the primary responsibility of the functional representatives on the supply planning team?

During the sales and operations planning (S&OP) process, which of the following tasks is the primary responsibility of the functional representatives on the supply planning team?
A . Identifying reasons why the demand plan is not realistic
B . Communicating when an event will prevent meeting the supply plan
C . Ensuring that the functional objectives are considered when developing the plans
D . Understanding how to use the plan to improve functional performance

View Answer

Answer: C

Explanation:

The supply planning team is responsible for developing a supply plan that balances the demand plan with the available resources and capacities. The functional representatives on the supply planning team, such as production, procurement, engineering, and finance, need to ensure that their functional objectives are considered when developing the plans. For example, production needs to consider the impact of the supply plan on the production schedule, capacity utilization, and labor requirements. Procurement needs to consider the impact of the supply plan on the supplier relationships, lead times, and inventory levels. Engineering needs to consider the impact of the supply plan on the product design, quality, and innovation. Finance needs to consider the impact of the supply plan on the costs, revenues, and profitability. By ensuring that the functional objectives are considered, the supply planning team can create a feasible and optimal supply plan that aligns with the overall business strategy12.

References:

1 S&OP: A Comprehensive Overview of Sales and Operations Planning 3

2 CPIM Exam References – Association for Supply Chain Management 1