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S&OP: Balancing Demand and Supply
Run a sales-and-operations plan that reconciles demand, supply, and finance.
Inside this lesson
- Define S&OP as a cross-functional monthly cadence designed to reconcile demand, supply, and financial targets.
- Trace the flow of the five classic S&OP steps from data gathering to the executive meeting.
- Contrast level and chase production strategies, identifying the trade-offs between inventory accumulation and flexible capacity.
- Compute required production volumes given demand, opening inventory, and target inventory levels to achieve numeric reconciliation.
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Educational training content only - not legal, financial, customs, or professional advice, and not a promise of any operational or business result. Examples are illustrative and use hypothetical data with stated assumptions and units. Trade-term and regulatory context is general and jurisdiction-neutral; always confirm current rules with a qualified source. Third-party names are descriptive and imply no affiliation.