Sales & Operational Planning

Sales & Operations Planning

Business Need

Business Need

A heavy metal manufacture company has a challenge in preparing production plan every month. The sales team has a sales forecast which is not accurate. Often there are ad-hoc orders coming in last minute and the planners need to re-plan the entire production in order to fulfill the ad-hoc orders. There are also various shift of workers in multiple plants. Usually it will take 2 weeks to prepare the production plan for next month. Any disruptions, such as unexpected maintenance shut-down, last minute order will lead to longer planning time.

Optimization Solution

Optimization Solution

A Mixed Integer Programming Model was built for S&OP solution. The objective can be minimizing total production cost or maximizing total profit during the production period. Selling price of each SKU, safety stock level of each SKU, multiple working modes and working shifts are considered in the solution.

Value from Optimization

Value from Optimization

The planners can complete a plan and share with other functional teams with one click of button. S&OP solution also provides a common platform for sales team, production team, finance team, procurement team to discuss various scenarios, brings much efficiency to the organization.