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World Class Sales and Operations Planning by Donald Sheldon

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CREATING THE DEMAND PLAN

The demand plan is probably the most talked about element of the S&OP process. In fact, probably no single process within the ERP business model, including the S&OP process itself, gets more attention than demand planning or “the forecast.” People everywhere enjoy blaming the forecast for their planning woes. The facts support that, while easy to attract blame, the forecast itself is not usually the problem. The popularity of this source of blame comes from the frequently observed wide band of process variation introduced into almost every business by its customers. The truth—almost all customers are ill behaved. Businesses ...

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