Advanced sales and operations planning based on integration of physical and financial flows

J. Z. Wang, P. Y. Hsu

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations

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.

Original languageEnglish
Title of host publicationIEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management
Pages70-74
Number of pages5
DOIs
StatePublished - 2010
EventIEEE International Conference on Industrial Engineering and Engineering Management, IEEM2010 - Macao, China
Duration: 7 Dec 201010 Dec 2010

Publication series

NameIEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management

Conference

ConferenceIEEE International Conference on Industrial Engineering and Engineering Management, IEEM2010
Country/TerritoryChina
CityMacao
Period7/12/1010/12/10

Keywords

  • Cash flow
  • Decision model
  • S&OP

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