Sales and operations planning in the process industry

This paper provides a systematic review of sales and operations planning (S&OP) in process industries (PIs). The aim is to investigate the present state of S&OP in PIs and then to identify the desired future state of the S&OP process based on the specific characteristics of PIs. The findings of this paper show that this issue has not received much attention in the academic world. Hence there is a need for conceptual models with focus on specific characteristics of PI. In particular, characteristics upstream of the discretization point are investigated and implementation of S&P in the PI context is stressed.

[1]  Christophe Caux,et al.  Advanced planning and scheduling systems in aluminium conversion industry , 2006, Int. J. Comput. Integr. Manuf..

[2]  Liang-Tu Chen,et al.  Pricing and production lot-size/scheduling with finite capacity for a deteriorating item over a finite horizon , 2005, Comput. Oper. Res..

[3]  Jc Jan Fransoo,et al.  Operations management research in process industries , 2006 .

[4]  R. Sousa,et al.  The impact of sales and operations planning practices on manufacturing operational performance , 2014 .

[5]  Eligius M. T. Hendrix,et al.  An MILP approximation for ordering perishable products with non-stationary demand and service level constraints , 2014 .

[6]  John E. Boyer,et al.  10 Proven Steps to Successful S&op , 2009 .

[7]  D. R. Dennis,et al.  An analysis of process industry production and inventory management systems , 2000 .

[8]  A. Scavarda,et al.  Sales and operations planning: A research synthesis , 2012 .

[9]  Hartmut Stadtler,et al.  Supply Chain Management and Advanced Planning , 2000 .

[10]  D. H. R. Price,et al.  A DSS approach to developing systems to support production planning and control in smaller companies , 1999 .

[11]  Jack R. Meredith,et al.  An Empirical Analysis of Process Industry Transformation Systems , 2000 .

[12]  Antonio Márcio Tavares Thomé,et al.  Complexity as contingency in sales and operations planning , 2014, Ind. Manag. Data Syst..

[13]  Terry P. Harrison,et al.  Sales and operations planning in systems with order configuration uncertainty , 2010, Eur. J. Oper. Res..

[14]  Kim LaScola Needy,et al.  A Classification Scheme for the Process Industry to Guide the Implementation of Lean , 2006 .

[15]  Antônio Márcio Tavares Thomé,et al.  Sales and operations planning and the firm performance , 2012 .

[16]  Ignacio E. Grossmann,et al.  Computers and Chemical Engineering , 2014 .

[17]  X. Liu,et al.  Production planning with limited inventory capacity and allowed stockout , 2008 .

[18]  Patrik Jonsson A sales and operations planning configuration framework , 2011 .

[19]  Riikka Kaipia,et al.  Sales and operations planning: responding to the needs of industrial food producers , 2014 .

[20]  Patrick Bower,et al.  12 Most Common Threats to Sales and Operations Planning Process , 2005 .

[21]  Victor Portougal,et al.  Reengineering the production planning process in the food industry , 1997 .

[22]  Richard C. Ling Orchestrating success: Improve control of the business with sales & operations planning , 1988 .

[23]  Jan Olhager,et al.  Linking long-term capacity management for manufacturing and service operations , 2012 .

[24]  Manoj K Singh What makes a winning S&OP program , 2010 .

[25]  Eric J. Tinker Revitalize Your S&OP , 2010 .

[26]  Larry Lapide,et al.  Sales and Operations Planning Part Iii: A Diagnostic Model , 2005 .

[27]  Patrick Bower,et al.  How the S&op Process Creates Value in the Supply Chain , 2006 .

[28]  David F. Pyke,et al.  Sales and operations planning: an exploratory study and framework , 2007 .

[29]  Heinrich Kuhn,et al.  Simultaneous Investment, Operations, and Financial Planning in Supply Chains: A Value-Based Optimization Approach , 2012 .

[30]  John F. Proud,et al.  Master Scheduling: A Practical Guide to Competitive Manufacturing , 1994 .

[31]  Kumar Rajaram,et al.  Aggregate production planning for process industries under oligopolistic competition , 2012, Eur. J. Oper. Res..

[32]  Jan Olhager,et al.  Evolution of operations planning and control: from production to supply chains , 2013 .

[33]  Jc Jan Fransoo,et al.  A Typology of Production Control Situations in Process Industries , 1994 .

[34]  Mikael Rönnqvist,et al.  Tactical supply chain planning for a forest biomass power plant under supply uncertainty , 2014 .

[35]  Thomas Kirschstein,et al.  Integrated production and intermodal transportation planning in large scale production–distribution-networks , 2013 .

[36]  Zhijun Wu,et al.  An improved production planning method for process industries , 2011 .

[37]  S. D'Amours,et al.  The value of sales and operations planning in oriented strand board industry with make-to-order manufacturing system: Cross functional integration under deterministic demand and spot market recourse , 2008 .

[38]  Irineu G.N. Gianesi,et al.  Implementing manufacturing strategy through strategic production planning , 1998 .

[39]  W. J. Selen,et al.  A production model and maintenance planning model for the process industry , 1996 .

[40]  Donald E. Shobrys,et al.  Planning, scheduling and control systems: why cannot they work together , 2000 .

[41]  Herbert Meyr,et al.  Supply Chain Management und Advanced Planning , 2010 .

[42]  Sophie D'Amours,et al.  Simulation and performance evaluation of partially and fully integrated sales and operations planning , 2010 .

[43]  Susan Greener,et al.  Business Research Methods , 2008 .

[44]  S. Croom,et al.  Introduction to Research Methodology in Operations Management , 2010 .

[45]  J. R. Tony Arnold,et al.  Introduction to Materials Management , 1991 .

[46]  Bernard Grabot,et al.  Sales and operations planning: the supply chain pillar , 2008 .

[47]  Tom Wallace,et al.  Forecasting and Sales & Operations Planning: Synergy in Action , 2006 .

[48]  Martin Rudberg,et al.  Centralised supply chain master planning employing advanced planning systems , 2009 .

[49]  Lâm Laurent Lim,et al.  Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach , 2014 .

[50]  Luis Puigjaner,et al.  Empowering financial tradeoff with joint financial and supply chain planning models , 2007, Math. Comput. Model..

[51]  Peter L. King Lean for the Process Industries , 2009 .

[52]  Garth Boehm Report on the industry blend uniformity practices survey , 2001 .

[53]  Samir Lamouri,et al.  New problem with sales, inventories, and operations planning in a supply chain environment , 2000, SPIE Optics East.

[54]  Josef Kallrath,et al.  Planning and scheduling in the process industry , 2002, OR Spectr..

[55]  Chris T. Kiranoudis,et al.  Design and production planning for multiproduct dehydration plants , 1995 .

[56]  K. Haller Conducting A Literature Review , 1988, MCN. The American journal of maternal child nursing.

[57]  Pio A. Aguirre,et al.  DESIGN AND PLANNING OPTIMIZATION OF MULTIPLANT COMPLEXES IN THE FOOD INDUSTRY , 2007 .

[58]  Masoud Rabbani,et al.  Robust optimization approach to production system with failure in rework and breakdown under uncertainty: evolutionary methods , 2015 .

[59]  R. P. Mohanty,et al.  A Hierarchical Production Planning Approach for a Steel Manufacturing System , 1992 .

[60]  Jan Olhager,et al.  Strategic positioning of the order penetration point , 2003 .

[61]  Alain Martel,et al.  Coordinated Contract Decisions in a Make-to-Order Manufacturing Supply Chain: A Stochastic Programming Approach , 2013 .

[62]  Ron Basu,et al.  New criteria of performance management , 2001 .

[63]  Stephan M. Wagner,et al.  The game plan for aligning the organization , 2014 .

[64]  Larry Lapide Sales and Operations Planning Part Ii: Enabling Technology , 2004 .

[65]  Jeffrey L. ArthurKenneth D. Lawrence,et al.  Multiple goal production and logistics planning in a chemical and pharmaceutical company , 1982, Comput. Oper. Res..

[66]  Jan Olhager,et al.  Linking manufacturing strategy decisions on process choice with manufacturing planning and control systems , 2002 .

[67]  Marianthi G. Ierapetritou,et al.  Integrated production planning and scheduling optimization of multisite, multiproduct process industry , 2012, Comput. Chem. Eng..

[68]  M. P. Biswal,et al.  Multi-choice multi-objective mathematical programming model for integrated production planning: a case study , 2013, Int. J. Syst. Sci..

[69]  George G. Polak,et al.  A hierarchical production plan for a make-to-order steel fabrication plant , 2004 .

[70]  Gang George Yin,et al.  Stochastic models and numerical solutions for production planning with applications to the paper industry , 2003, Comput. Chem. Eng..

[71]  Fred Baumann,et al.  Collaborate, externally and internally: in CPFR and S&OP, two planning vehicles are better than one , 2010 .

[72]  C. Karlsson Researching Operations Management , 2010 .

[73]  Abdelhakim Artiba,et al.  An application of a planning and scheduling multi-model approach in the chemical industry , 1998 .

[74]  Jan Fransoo,et al.  Modeling the planning process in advanced planning systems , 2004, Inf. Manag..

[75]  Jun-Zhong Wang,et al.  Advanced sales and operations planning framework in a company supply chain , 2012, Int. J. Comput. Integr. Manuf..

[76]  Jukka Korpela,et al.  Demand forecasting errors in industrial context: Measurement and impacts , 2009 .

[77]  Bhaba R. Sarker,et al.  Aggregate production planning with learning effect and uncertain demand , 2015 .

[78]  Ignacio E. Grossmann,et al.  Enterprise‐wide optimization: A new frontier in process systems engineering , 2005 .

[79]  Samir Lamouri,et al.  Mathematical Programming Approaches for Stable Tactical and Operational Planning in Supply Chain and APS Context , 2008, J. Decis. Syst..

[80]  J. Fontanella,et al.  The secrets to S&OP success , 2006 .

[81]  Fred Baumann,et al.  The Shelf-Connected Supply Chain: Strategically Linking CPFR with S&OP at the Executive Level , 2010 .

[82]  Stephen Eldridge,et al.  New product introduction and supplier integration in sales and operations planning:evidence from the Asia Pacific region , 2015 .

[83]  J. Fransoo Demand Management and Production Control in Process Industries , 1992 .

[84]  M. Muzumdar,et al.  Integrated business planning : kicking S&OP up a notch , 2009 .

[85]  Riikka Kaipia,et al.  Contingency between S & OP design and planning environment , 2015 .

[86]  Jan Olhager,et al.  Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning , 2001 .

[87]  K. Singhal,et al.  Holt, Modigliani, Muth, and Simon's work and its role in the renaissance and evolution of operations management , 2007 .

[88]  G. Kruse,et al.  New wine in old bottles , 2004 .

[89]  Lyn Corno The Best-Laid Plans , 1993 .

[90]  J. Nevan Wright,et al.  Total Supply Chain Management , 2007 .

[91]  Rogelio Oliva,et al.  Cross-functional alignment in supply chain planning: A case study of sales and operations planning , 2011 .

[92]  J. Ashayeri,et al.  A PRODUCTION AND MAINTENANCE PLANNING MODEL FOR THE PROCESS INDUSTRY , 1995 .

[93]  D. Tranfield,et al.  Towards a Methodology for Developing Evidence-Informed Management Knowledge by Means of Systematic Review , 2003 .

[94]  Martin Rudberg,et al.  APS for tactical planning in a steel processing company , 2011, Ind. Manag. Data Syst..

[95]  Antônio Márcio Tavares Thomé,et al.  Collaborative planning, forecasting and replenishment: a literature review , 2015 .

[96]  Patrik Jonsson,et al.  Prerequisites for using APS in S&OP and MPS processes , 2008 .

[97]  Patrik Jonsson,et al.  Manufacturing Planning and Control , 2009 .

[98]  Richard E. Plank,et al.  Sales and operations planning , 2014 .

[99]  B. Chae,et al.  Developing key performance indicators for supply chain: an industry perspective , 2009 .

[100]  Goutam Dutta,et al.  An optimization-based decision support system for strategic planning in a process industry: The case of a pharmaceutical company in India , 2007 .

[101]  Nilay Shah,et al.  An investigation on integration of aggregate production planning, master production scheduling and short-term production scheudling of batch process operations through a common data model , 2000 .

[102]  Karl Inderfurth,et al.  Planning and control of rework in the process industries: A review , 2002 .

[103]  R. Affonso,et al.  Cooperation models for supply chain management , 2009 .

[104]  Riikka Kaipia,et al.  A coordination framework for sales and operations planning (S&OP): Synthesis from the literature , 2014 .

[105]  Josefa Mula,et al.  Using systems dynamics to evaluate the tradeoff among supply chain aggregate production planning policies , 2014 .

[106]  Yu Zheng,et al.  Integrating production planning and maintenance: an iterative method , 2014, Ind. Manag. Data Syst..

[107]  Durk-Jouke van der Zee,et al.  Lean planning in the semi-process industry, a case study , 2011 .

[108]  F. David,et al.  Enterprise resource planning systems in the aluminium conversion industry , 2005 .

[109]  Andrew C. Lyons,et al.  Developing an understanding of lean thinking in process industries , 2013 .

[110]  Patrik Jonsson,et al.  When should advanced planning and scheduling systems be used in sales and operations planning , 2014 .

[111]  Li Li,et al.  Information support technologies of integrated production planning and control for OEM driven networked manufacturing: Framework, technologies and case , 2013, J. Enterp. Inf. Manag..

[112]  Lionel Dupont,et al.  Production management of a steel manufacturing system: a hierarchical planning model , 1993 .

[113]  Donald R. Cooper,et al.  Business Research Methods , 1980 .

[114]  M. K. Omar,et al.  Hierarchical production planning and scheduling in a multi-product, batch process environment , 2007 .

[115]  Vincent C. S. Wiers,et al.  A case study on the integration of APS and ERP in a steel processing plant , 2002 .

[116]  Frédéric Adam,et al.  The role of hierarchical production planning in food manufacturing SMEs , 2015 .

[117]  Luis Puigjaner,et al.  Simultaneous production and logistics operations planning in semicontinuous food industries , 2012 .

[118]  Naoko Akiya,et al.  Selecting make-to-stock and postponement policies for different products in a chemical plant: A case study using discrete event simulation , 2012 .

[119]  Mario T. Tabucanon,et al.  Production Planning and scheduling for an iron and steel production system , 1991 .

[120]  Larry Lapide,et al.  Sales and Operations Planning Part I: The Process , 2004 .

[121]  Alan L. Milliken Sales & Operations Planning: Building the Foundation , 2008 .

[122]  N. V. Hove Successful Global S&OP: Leadership, Change Management, Behavior, & Cross-Cultural Differences , 2012 .

[123]  Patrick Bower Guideposts, Directions, and Scenarios: Connecting S&OP to Detailed Planning , 2012 .

[124]  Patrik Jonsson,et al.  The potential benefits of advanced planning and scheduling systems in sales and operations planning , 2010 .

[125]  John A. Gallucci,et al.  How to Mitigate Risk and Drive Alignment with S&op , 2008 .