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sales and operations plan (S&OP)

The company-wide or business unit level demand and supply plan that provides the next level of detail in fulfilling business plan objectives by describing family-level sales, production and inventory targets and incorporates the planned effects of new product or promotion introductions. It usually undergoes a monthly joint review by all departments that analyzes current status against the previous plan to provide corrective action.

The proposed S&OP is used by rough cut capacity planning (RCCP) to provide the initial view of aggregate capacity requirements, and sets target production and inventory levels for the master production schedule.


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