Which of the following processes ensures that functional plans are consistent?
A.
Strategic planning
B.
Sales and operations planning
C.
Project planning
D.
Master scheduling
The Answer Is:
B
This question includes an explanation.
Explanation:
Sales and Operations Planning (S&OP) ensures that functional plans are consistent by:
Aligning Cross-Functional Plans: It integrates plans from various functions such as sales, marketing, finance, and operations into a single coherent strategy.
Balancing Supply and Demand: By regularly reviewing and adjusting forecasts and production plans, S&OP ensures that supply capabilities align with market demand.
Financial Alignment: S&OP converts operational plans into financial terms, ensuring that budgetary constraints and financial goals are considered in operational decision-making.
Regular Review Cycles: Monthly or periodic reviews ensure that plans are adjusted based on the latest data, maintaining consistency and relevance across all functions.
References
"Sales and Operations Planning: The How-To Handbook" by John Dougherty and Christopher Gray
APICS, "The Essentials of Sales and Operations Planning"
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