In a regular S&OP process, unconstrained (market) demand is transferred to a simulation version within supply planning. The supply planning team identifies bottlenecks and formulates a constrained supply plan. This constrained supply plan is transferred back to Demand Planning. In case the unconstrained demand plan cannot be fully met by supply, the formulation of the constrained demand plan (on aggregate level) is usually done by the S&OP team or an Allocation Board. In this project however, the constrained demand plan was generated by the system based on the unconstrained demand and constrained supply using proportional allocation.
System Determined Constrained Demand
Industry
Consumer Goods
Core Competence
Sales & Operations Planning
The project in detail
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