A company recently faced an increase in backorders. The company's marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity. Which of the following processes will help to solve this type of problem in the future?

Question

Quizplus · Accepted Answer

Sales and operations planning (S&OP) is a process that helps in aligning the sales and marketing department with the purchasing and planning department to ensure that there is sufficient inventory to meet the demand generated by a sales promotion. It involves all departments and stakeholders in the planning process, and helps to prevent issues like backorders by providing visibility across the organization. Advanced planning and scheduling (APS) focuses more on optimizing production and capacity planning. Supplier relationship management (SRM) focuses on managing supplier relationships, and customer relationship management (CRM) focuses on managing customer relationships. While these processes may be important, they are not specifically designed to address the issue of backorders resulting from a lack of coordination between departments.

A Company Recently Faced an Increase in Backorders