CHAPTER 3

The Business Planning Process

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The Planning CycleThe Idea Behind SIOP: Demand and Supply Integration

Sales, Inventory, and Operations Planning

Methodology Based on the People, Process, and Tools

The ideal supply chain maintains no unnecessary inventory, responds to changes in the marketplace, and supplies the required products in a timely manner. However, in most businesses that’s not what happens. Instead, manufacturing complains that sales overstates the demand forecasts and/or doesn’t sell the product, and the supply chain gets blamed for having too much inventory.

At the same time, the sales team complains that manufacturing can’t ...

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