Title :
Advanced sales and operations planning based on integration of physical and financial flows
Author :
Wang, J.Z. ; Hsu, P.Y.
Author_Institution :
Dept. of Bus. Adm., Nat. Central Univ., Chungli, Taiwan
Abstract :
Traditional sales and operations planning (S&OP) focus on balancing between supply and demand in a company. It is utilized to ensure the alignment of plans supporting the business strategic goal. An obvious drawback of past decision models is lacking in considering financial planning. The paper proposes a new global S&OP planning model integrating financial flows and physical flows in a company supply chain to evaluate the benefit with various scenarios. The feasibility of the proposed model to the financial issue is demonstrated with a case study. We discuss the sensitivity of cash flow to the changes of payment terms and credit limits. The significance of this study is to adopt the integrated model as a decision support tool thereby enhancing the coordination between financial and physical activities.
Keywords :
financial management; sales management; strategic planning; supply and demand; supply chain management; business strategic goal; cash flow sensitivity; company supply chain; credit limit; decision support tool; financial flow; financial planning; operations planning; payment terms; physical flow; plan alignment; sales planning; supply and demand; Capacity planning; Companies; Marketing and sales; Mathematical model; Planning; Supply chains; Cash flow; Decision model; S&OP;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on
Conference_Location :
Macao
Print_ISBN :
978-1-4244-8501-7
Electronic_ISBN :
2157-3611
DOI :
10.1109/IEEM.2010.5674428