IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v188y2017icp139-155.html
   My bibliography  Save this article

Sales and operations planning in the process industry: A literature review

Author

Listed:
  • Noroozi, Sayeh
  • Wikner, Joakim

Abstract

This paper provides a systematic literature review of sales and operations planning (S&OP) in the process industries (PIs). The aim is to investigate the present state of S&OP in such industries in comparison with the discrete manufacturing sector and to identify the specific characteristics of PIs that can be influential at the S&OP level. Three bibliographic databases as well as gray literature were searched and as a result, 145 papers were reviewed based on their full texts. The findings show that the implementation of S&OP in PIs has not received much attention in the literature. Hence, there is a need for conceptual models with a focus on the specific characteristics of PIs. A comparison between PIs and discrete manufacturing industries in implementing the S&OP process is performed through an integrative S&OP framework and the differences are presented. The specific characteristics of PIs are scrutinized through the concept of the discretization decoupling point. PIs are hybrids of continuous production and discrete production (upstream and downstream of the discretization decoupling point), and the specific characteristics of PIs are related to the continuous production part. This paper contributes to the literature by identifying the specific characteristics of various types of PIs that can be added to the generic S&OP process which has originated in the discrete manufacturing industries. Practically, PIs can benefit from the consideration of the specific characteristics gathered in this paper in their S&OP processes.

Suggested Citation

  • Noroozi, Sayeh & Wikner, Joakim, 2017. "Sales and operations planning in the process industry: A literature review," International Journal of Production Economics, Elsevier, vol. 188(C), pages 139-155.
    • Handle: RePEc:eee:proeco:v:188:y:2017:i:c:p:139-155
    DOI: 10.1016/j.ijpe.2017.03.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552731730066X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2017.03.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Boonmee, Atiwat & Sethanan, Kanchana, 2016. "A GLNPSO for multi-level capacitated lot-sizing and scheduling problem in the poultry industry," European Journal of Operational Research, Elsevier, vol. 250(2), pages 652-665.
    2. Feng, Yan & D'Amours, Sophie & Beauregard, Robert, 2008. "The value of sales and operations planning in oriented strand board industry with make-to-order manufacturing system: Cross functional integration under deterministic demand and spot market recourse," International Journal of Production Economics, Elsevier, vol. 115(1), pages 189-209, September.
    3. Tuomikangas, Nina & Kaipia, Riikka, 2014. "A coordination framework for sales and operations planning (S&OP): Synthesis from the literature," International Journal of Production Economics, Elsevier, vol. 154(C), pages 243-262.
    4. M.P. Biswal & S. Acharya, 2013. "Multi-choice multi-objective mathematical programming model for integrated production planning: a case study," International Journal of Systems Science, Taylor & Francis Journals, vol. 44(9), pages 1651-1665.
    5. Wagner, Stephan M. & Ullrich, Kristoph K.R. & Transchel, Sandra, 2014. "The game plan for aligning the organization," Business Horizons, Elsevier, vol. 57(2), pages 189-201.
    6. Sharda, Bikram & Akiya, Naoko, 2012. "Selecting make-to-stock and postponement policies for different products in a chemical plant: A case study using discrete event simulation," International Journal of Production Economics, Elsevier, vol. 136(1), pages 161-171.
    7. Meisel, Frank & Kirschstein, Thomas & Bierwirth, Christian, 2013. "Integrated production and intermodal transportation planning in large scale production–distribution-networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 62-78.
    8. Chen-Ritzo, Ching-Hua & Ervolina, Tom & Harrison, Terry P. & Gupta, Barun, 2010. "Sales and operations planning in systems with order configuration uncertainty," European Journal of Operational Research, Elsevier, vol. 205(3), pages 604-614, September.
    9. Pauls-Worm, Karin G.J. & Hendrix, Eligius M.T. & Haijema, René & van der Vorst, Jack G.A.J., 2014. "An MILP approximation for ordering perishable products with non-stationary demand and service level constraints," International Journal of Production Economics, Elsevier, vol. 157(C), pages 133-146.
    10. Hahn, G.J. & Kuhn, H., 2012. "Simultaneous investment, operations, and financial planning in supply chains: A value-based optimization approach," International Journal of Production Economics, Elsevier, vol. 140(2), pages 559-569.
    11. Shabani, Nazanin & Sowlati, Taraneh & Ouhimmou, Mustapha & Rönnqvist, Mikael, 2014. "Tactical supply chain planning for a forest biomass power plant under supply uncertainty," Energy, Elsevier, vol. 78(C), pages 346-355.
    12. Tavares Thomé, Antônio Márcio & Scavarda, Luiz Felipe & Fernandez, Nicole Suclla & Scavarda, Annibal José, 2012. "Sales and operations planning: A research synthesis," International Journal of Production Economics, Elsevier, vol. 138(1), pages 1-13.
    13. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    14. Kopanos, Georgios M. & Puigjaner, Luis & Georgiadis, Michael C., 2012. "Simultaneous production and logistics operations planning in semicontinuous food industries," Omega, Elsevier, vol. 40(5), pages 634-650.
    15. Dutta, Goutam & Fourer, Robert & Majumdar, Akhilesh & Dutta, Debabrata, 2007. "An optimization-based decision support system for strategic planning in a process industry: The case of a pharmaceutical company in India," International Journal of Production Economics, Elsevier, vol. 106(1), pages 92-103, March.
    16. Liu, X. & Tu, Yl., 2008. "Production planning with limited inventory capacity and allowed stockout," International Journal of Production Economics, Elsevier, vol. 111(1), pages 180-191, January.
    17. Daina Dennis & Jack Meredith, 2000. "An Empirical Analysis of Process Industry Transformation Systems," Management Science, INFORMS, vol. 46(8), pages 1085-1099, August.
    18. Kerkkänen, Annastiina & Korpela, Jukka & Huiskonen, Janne, 2009. "Demand forecasting errors in industrial context: Measurement and impacts," International Journal of Production Economics, Elsevier, vol. 118(1), pages 43-48, March.
    19. Pool, Arnout & Wijngaard, Jacob & van der Zee, Durk-Jouke, 2011. "Lean planning in the semi-process industry, a case study," International Journal of Production Economics, Elsevier, vol. 131(1), pages 194-203, May.
    20. Olhager, Jan & Rudberg, Martin & Wikner, Joakim, 2001. "Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning," International Journal of Production Economics, Elsevier, vol. 69(2), pages 215-225, January.
    21. Roberto Luis Hollmann & Luiz Felipe Scavarda & Antônio Márcio Tavares Thomé, 2015. "Collaborative planning, forecasting and replenishment: a literature review," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 64(7), pages 971-993, September.
    22. Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
    23. Houghton, Erne & Portougal, Victor, 1997. "Reengineering the production planning process in the food industry," International Journal of Production Economics, Elsevier, vol. 50(2-3), pages 105-116, June.
    24. Karmarkar, Uday S. & Rajaram, Kumar, 2012. "Aggregate production planning for process industries under oligopolistic competition," European Journal of Operational Research, Elsevier, vol. 223(3), pages 680-689.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samuel Roscoe & Nachiappan Subramanian & Romina Prifti & Lin Wu, 2020. "Stakeholder engagement in a sustainable sales and operations planning process," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3526-3541, December.
    2. Marcelo Xavier Seeling & Tobias Kreuter & Luiz Felipe Scavarda & Antônio Márcio Tavares Thomé & Bernd Hellingrath, 2021. "Global sales and operations planning: A multinational manufacturing company perspective," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-22, September.
    3. Giuseppe Fragapane & Dmitry Ivanov & Mirco Peron & Fabio Sgarbossa & Jan Ola Strandhagen, 2022. "Increasing flexibility and productivity in Industry 4.0 production networks with autonomous mobile robots and smart intralogistics," Annals of Operations Research, Springer, vol. 308(1), pages 125-143, January.
    4. Unai Apaolaza & Aitor Orue & Aitor Lizarralde & Aitor Oyarbide-Zubillaga, 2022. "Competitive Improvement through Integrated Management of Sales and Operations," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    5. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    6. Tobias Kreuter & Luiz Felipe Scavarda & Antonio Márcio Tavares Thomé & Bernd Hellingrath & Marcelo Xavier Seeling, 2022. "Empirical and theoretical perspectives in sales and operations planning," Review of Managerial Science, Springer, vol. 16(2), pages 319-354, February.
    7. Goh, Shao Hung & Eldridge, Stephen, 2019. "Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance," International Journal of Production Economics, Elsevier, vol. 214(C), pages 80-94.
    8. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2020. "Tactical sales and operations planning: A holistic framework and a literature review of decision-making models," International Journal of Production Economics, Elsevier, vol. 228(C).
    9. Cannas, Violetta Giada & Gosling, Jonathan, 2021. "A decade of engineering-to-order (2010–2020): Progress and emerging themes," International Journal of Production Economics, Elsevier, vol. 241(C).
    10. Diego Aparecido Wolfshorndl & Mauro Vivaldini & João Batista Camargo Junior, 2020. "Advanced Planning System as support for Sales and Operation Planning: study in a Brazilian automaker," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 1-13, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ben Ali, M. & D’Amours, S. & Gaudreault, J. & Carle, M-A., 2018. "Configuration and evaluation of an integrated demand management process using a space-filling design and Kriging metamodeling," Operations Research Perspectives, Elsevier, vol. 5(C), pages 45-58.
    2. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2020. "Tactical sales and operations planning: A holistic framework and a literature review of decision-making models," International Journal of Production Economics, Elsevier, vol. 228(C).
    3. Tuomikangas, Nina & Kaipia, Riikka, 2014. "A coordination framework for sales and operations planning (S&OP): Synthesis from the literature," International Journal of Production Economics, Elsevier, vol. 154(C), pages 243-262.
    4. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    5. Tobias Kreuter & Luiz Felipe Scavarda & Antonio Márcio Tavares Thomé & Bernd Hellingrath & Marcelo Xavier Seeling, 2022. "Empirical and theoretical perspectives in sales and operations planning," Review of Managerial Science, Springer, vol. 16(2), pages 319-354, February.
    6. Pedroso, Carolina Belotti & da Silva, Andrea Lago & Tate, Wendy Lea, 2016. "Sales and Operations Planning (S&OP): Insights from a multi-case study of Brazilian Organizations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 213-229.
    7. Unai Apaolaza & Aitor Orue & Aitor Lizarralde & Aitor Oyarbide-Zubillaga, 2022. "Competitive Improvement through Integrated Management of Sales and Operations," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    8. Goh, Shao Hung & Eldridge, Stephen, 2019. "Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance," International Journal of Production Economics, Elsevier, vol. 214(C), pages 80-94.
    9. Eksoz, Can & Mansouri, S. Afshin & Bourlakis, Michael, 2014. "Collaborative forecasting in the food supply chain: A conceptual framework," International Journal of Production Economics, Elsevier, vol. 158(C), pages 120-135.
    10. Wochner, Sina & Grunow, Martin & Staeblein, Thomas & Stolletz, Raik, 2016. "Planning for ramp-ups and new product introductions in the automotive industry: Extending sales and operations planning," International Journal of Production Economics, Elsevier, vol. 182(C), pages 372-383.
    11. Z. Caner Taşkın & Semra Ağralı & A. Tamer Ünal & Vahdet Belada & Filiz Gökten-Yılmaz, 2015. "Mathematical Programming-Based Sales and Operations Planning at Vestel Electronics," Interfaces, INFORMS, vol. 45(4), pages 325-340, August.
    12. Ambrose, Scott C. & Matthews, Lucy M. & Rutherford, Brian N., 2018. "Cross-functional teams and social identity theory: A study of sales and operations planning (S&OP)," Journal of Business Research, Elsevier, vol. 92(C), pages 270-278.
    13. Samuel Roscoe & Nachiappan Subramanian & Romina Prifti & Lin Wu, 2020. "Stakeholder engagement in a sustainable sales and operations planning process," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3526-3541, December.
    14. Sali, Mustapha & Ghrab, Yahya & Chatras, Clément, 2023. "Optimal product aggregation for sales and operations planning in mass customisation context," International Journal of Production Economics, Elsevier, vol. 263(C).
    15. Tavares Thomé, Antônio Márcio & Scavarda, Luiz Felipe & Fernandez, Nicole Suclla & Scavarda, Annibal José, 2012. "Sales and operations planning: A research synthesis," International Journal of Production Economics, Elsevier, vol. 138(1), pages 1-13.
    16. Wang, Gang & Gunasekaran, Angappa & Ngai, Eric W.T. & Papadopoulos, Thanos, 2016. "Big data analytics in logistics and supply chain management: Certain investigations for research and applications," International Journal of Production Economics, Elsevier, vol. 176(C), pages 98-110.
    17. João Rampon Neto & Paulo Fernando Pinto Barcellos, 2023. "Challenges of Implementing S&OP in a Mid-sized Automotive Components Company: An Action Research Approach," Systemic Practice and Action Research, Springer, vol. 36(5), pages 755-782, October.
    18. Fildes, Robert & Goodwin, Paul & Onkal, Dilek, 2015. "Information use in supply chain forecasting," MPRA Paper 66034, University Library of Munich, Germany.
    19. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    20. Quan Zhu & Harold Krikke, 2020. "Managing a Sustainable and Resilient Perishable Food Supply Chain (PFSC) after an Outbreak," Sustainability, MDPI, vol. 12(12), pages 1-11, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:188:y:2017:i:c:p:139-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.