The effect of Sale and Operation planning on total supply chain performance (a case study in forming industry)

Nowadays, Sales and Operations Planning has become a well-known and widely used process, yet, up to now, its usefulness has been neglected. This paper intended to assess the performance process of sale and operation planning through mathematical modelling procedure. Three Mixed Integer Programming (MIP) models have been developed in this study, namely fully integrated (with centralized sales, production, distribution and procurement planning), partially integrated (with centralized sales and production, but separated procurement and distribution planning), and decoupled (with centralized sales, but decentralized production, distribution and procurement planning). All three models have been developed for a multi-site manufacturing company. The results demonstrated the superiority of fully integrated model over the others.