Contingency between S & OP design and planning environment
2015 (English)In: International Journal of Physical Distribution & Logistics Management, ISSN 0960-0035, E-ISSN 1758-664X, Vol. 45, no 8, 747-773 p.Article in journal (Refereed) Published
Purpose – The purpose of this paper is to understand how companies design sales and operations planning (S&OP) contingent on the planning environment (PE).
Design/methodology/approach – On the basis of the literature, the paper creates an analytical framework identifying the main constructs related to the PE and S&OP design, which is the basis for gathering and analysing qualitative data from eight cases in the food industry. The findings highlight the relations between S&OP and the PE, and are used for generating three propositions.
Findings – Responding to the complex and uncertain PE, the companies set up S&OP on a stockkeeping unit (SKU) level, with the possibility of re-planning and a flexible planning horizon, thus differing
from what has generally been suggested in the literature. In addition, the companies are aligning the inputs, activities, and outcomes of the S&OP process to the PE. Particularly important environmental contingencies are uncertainty connected to demand and supply, frequent product launches, and production network complexity. Product-related variables have a lower impact on the S&OP design.
Research limitations/implications – The present study is limited to one industry only and a comparison between industries with larger data sets would be valuable in future studies. The study selected cases based on their S&OP maturity; further studies need to explore the effect of the alignment of S&OP and the PE on the planning performance.
Originality/value – In the literature, S&OP is presented as a generic process with a strict formal design that is equal for all companies. The study provides insights into how companies adjust S&OP according to the PE.
Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2015. Vol. 45, no 8, 747-773 p.
Production Engineering, Human Work Science and Ergonomics
IdentifiersURN: urn:nbn:se:liu:diva-121178DOI: 10.1108/IJPDLM-04-2014-0088ISI: 000360572000003OAI: oai:DiVA.org:liu-121178DiVA: diva2:852246