Constrained Supply as Starting Point

The company in this project produces commodities. Unlike in most other businesses, supply volumes on aggregate level needed to be considered as a given (could not be reduced or increased under normal circumstances). Therefore, supply was the starting point of the S&OP process, rather than the more common explosion of foreseen market demand. By, accommodating both demand and supply in a dedicated S&OP planning area, demand could be adjusted to supply on aggregate level and subsequently be broken down to medium levels of the product and customer hierarchies and adjusted until a realistic demand plan resulted. Subsequently, the demand plan on medium product level was transferred to the individual demand (APO DP) and supply (ECC PP)  planning tools.