Contingency between S & OP design and planning environment. Issue 8 (7th September 2015)

• Record Type: Journal Article
• Authors: Ivert, Linea Kjellsdotter; Dukovska-Popovska, Iskra; Fredriksson, Anna; Dreyer, Heidi C.; Kaipia, Riikka
• Is Part Of: International journal of physical distribution & logistics management. Volume 45:Issue 8(2015)
• Page Start: 747
• Page End: 773
• Publication Date: 2015-09-07
• Subjects: Physical distribution of goods -- Management -- Periodicals; Business logistics -- Periodicals; Materials management -- Periodicals; 658.788
• DOI: 10.1108/IJPDLM-04-2014-0088
• Languages: English
• ISSNs: 0960-0035

Abstract

<abstract> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <sec> <title content-type="abstract-heading">Purpose</title> <p> – The purpose of this paper is to understand how companies design sales and operations planning (S & OP) contingent on the planning environment (PE). </p> </sec> <sec> <title content-type="abstract-heading">Design/methodology/approach</title> <p> – On the basis of the literature, the paper creates an analytical framework identifying the main constructs related to the PE and S & OP design, which is the basis for gathering and analysing qualitative data from eight cases in the food industry. The findings highlight the relations between S & OP and the PE, and are used for generating three propositions. </p> </sec> <sec> <title content-type="abstract-heading">Findings</title> <p> – Responding to the complex and uncertain PE, the companies set up S & OP on a stock-keeping unit (SKU) level, with the possibility of re-planning and a flexible planning horizon, thus differing from what has generally been suggested in the literature. In addition, the companies are aligning the inputs, activities, and outcomes of the S & OP process to the PE. Particularly important environmental contingencies are uncertainty connected to demand and supply, frequent product launches, and production network complexity. Product-related variables have a lower impact on the S & OP design. </p> </sec> <sec> <title content-type="abstract-heading">Research limitations/implications</title> <p> – The present study is limited to one industry only and a comparison between industries with larger data sets would be valuable in future studies. The study selected cases based on their S & OP maturity; further studies need to explore the effect of the alignment of S & OP and the PE on the planning performance. </p> </sec> <sec> <title content-type="abstract-heading">Originality/value</title> <p> – In the literature, S & OP is presented as a generic process with a strict formal design that is equal for all companies. The study provides insights into how companies adjust S & OP according to the PE.</p> </sec> </abstract>