The effect of Sale and Operation planning on total supply chain performance (a case study in forming industry)

Subject Areas : Business Management

Mehrdad Madhoshi ¹ , Abdolhamid Safaei Ghadikolaei ² , Yaser Nemati ³

1 - Professor, Industrial Management Department, Faculty of Economics and administrative science, University of Mazandaran, Babolsar, Iran
2 - Associate Professor, Industrial Management Department, Faculty of Economics and administrative science, University of Mazandaran, Babolsar, Iran
3 - Ph.D. student in Production and Operations Management, Industrial Management Department, Faculty of Economics and administrative science, University of Mazandaran, Babolsar, Iran

Received: 2016-09-03 Accepted : 2017-02-19 Published : 2017-05-22

Keywords: Sales and Operations Planning (S&OP), Mixed Integer Programming (MIP), Make to Stock (MTS), forming industry,

Abstract :

Nowadays, Sales and Operations Planning has become a well-knownand widely used process, yet, up to now, its usefulness has beenneglected. This paper intended to assess the performance process of saleand operation planning through mathematical modelling procedure.Three Mixed Integer Programming (MIP) models have been developedin this study, namely fully integrated (with centralized sales, production,distribution and procurement planning), partially integrated (withcentralized sales and production, but separated procurement anddistribution planning), and decoupled (with centralized sales, butdecentralized production, distribution and procurement planning). Allthree models have been developed for a multi-site manufacturingcompany. The results demonstrated the superiority of fully integratedmodel over the others.

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