Sales Planning Requirements

The left curve reflects the effect of sales decisions on average prices spot sales quantities lower than the spot demand quantity lead to average prices higher than the average forecasted price for an elasticity > 0 as illustrated in the sales planning requirements in figure 38. 

Short-term sales planning is sometimes supported by a demand fulfillment and available-to-promise (ATP) module. Its purpose is to match inventories and production orders with demands, if customers require reliable quotes with only short notice. 

Sales Planning-, detailing the requirements to plan monthly sales volumes and values addressing commodity business characteristics of price-quantity relations and price volatility as well as uncertainty... 

Sales planning has to reflect the bidding process presented in subchapter 2.3. Fig. 20 illustrates the paradigm shift from demand fulfilment towards sales plan achievement, where demand forecast captures the role of a price-quantity bid that is cleared based on available supply and a certain sales flexibility. The sales planning mechanism is further described in the following detailed requirements. 

In analogy to the demand side, procurement contracts are fixed by quantity and price with the objective to ensure a basis volume of raw materials. Spot procurement supports company s flexibility requirements and the company can decide the spot procurement quantity with certain flexibility around the offered quantity. Price levels for contracts and spot business differ and are volatile in each period. Typically, companies operate with few key strategic suppliers for a respective product or raw material. Therefore, price-quantity models like in sales planning are less applicable. More often is the case that specifically commodity-type raw materials are procured on many-to-many exchanges, which is out of the scope in our case as described in section 3.2.6. If products are supplied by internal business units, transfer prices are applied following the contract procurement principles. 

The developed value chain planning model is very comprehensive with its model basis, value, sales, distribution, production and procurement part. The comprehensiveness of the model is a logical consequence of the comprehensiveness of value chain planning requirements based on industry case and literature analysis. Conclusions ... 

The team must also do a complete value chain analysis showing the suppliers, distributors, customers, end-users of the product, and where the organization will position itself in the industry. Furthermore, our position relative to competitive products must be established and analyzed. The team must also establish a basis of pricing the product, as well as the price itself The market plan should also include when the product introduction will occur, if there are plans to commercialize with a partner, what the sales force requirements will be, and a distribution plan for the product. 

Network Requirements Planning The network requirements planning should reduce the coordination efforts of the demand-based disciplines demand assessment and make or buy analysis by determining the type, quantity, and time of products to be produced. For that purpose, the requirements of material and components resulting from the sales plan need to be determined and distributed to the partners of the network to assure the fulfilment of demand. The fulfilment of demand is based on the subtasks network capacity planning, network demand allocation, and network procurement planning. 

The transportation activities of a farmer, who generates less tha 500,000 annually in gross receipts from the sale of agricultural commodities or products, are not subject to the security plan requirements if such activities are ... 

Sales cannot know how well their ideal sales figures harmonize with the resources procured by the enterprise on suspicion (high revenue) or whether they burden these resources in a manner that is tantamount to a commercial catastrophe (loss of profits) - in certain areas requiring work on Saturdays, and in others short-time working. Consequently, you should let the SCM conduct the dialog with sales in order to move one step closer to a profit-maximizing sales plan. 

In order to find the profit-maximizing product combination - specifically, the most lucrative sales plan, including customer orders - the first and foremost task is to plan and sell those products which put the existing resources (manpower, na-chines, inventory, etc.) to maximum use. Imagine, for example, you gain a customer order that uses machine capacity that is not required elsewhere. The additional turnover realized would amount to almost 100% in revenue. 

Use of Results. Sales analysis data are used ia many ways by company management. The results are most useful ia production planning, particularly if grade differences appear to be ia the offing, and ia assuting that adequate suppHes are available for sales. Inventory control, raw material procurement, technical service requirements, and trends ia accounts receivable are beneficiaries of good sales analyses. 

We will comply with NMLs policies and procedures for quality assurance activities. In addition we will develop our own ideas to improve upon NML requirements. We will set quality targets and objectives in line with corporate standards. In support of achieving customer satisfaction we will seek to achieve product conformity by carrying out quality assurance activities at all stages of vehicle manufacture - from planning through to vehicle sales. 

The way many companies identify resource requirements is to solicit resource budgets from each department covering a 1 to 5 year period. However, before the managers can prepare budgets they need to know what requirements they will have to meet. They will need access to the corporate plans, sales forecasts, new product development plans, marketing plans, production plans, etc. as well as the quality policies, objectives, and procedures. 

The process of compiling the budgets will start with the preparation of estimates of the physical requirements of the plan, be they manpower, materials, tons of fuel, cubic meters or therms of gas, units of electricity or cubic meters of water. These estimates will be prepared in relation to the estimates of output by manufacturing or process departments, which, in turn, will have been based on the quantities, or other measures forecast in the sales budgets. 

Q. In paragraph 6 of this affidavit, you write, "These requirements [under the Krauch Plan] were based upon needs indicated by the commercial and sales people." May I ask what evidence you have for this statement ... 

Different types of industries require different characteristics to be taken into account, because in model-based planning the real decision situation must be represented adequately, as the solution will otherwise not provide any benefit. Along the lines of Meyr and Stadtler [3], the characteristics of different supply chains can be classified into functional attributes (procurement type, production type, distribution type, and sales type) and structural attributes (topography of a supply chain, integration, and coordination). 

Planned independent requirements give the impression of a defined cross-scope material flow (i.e., a flow with a possible target outside of the organizational unit considered) at a given time with a given quantity but in most cases they are only based on a rough monthly sales demand forecast figure for the finished product. This means that the requirement quantity and date of a planned independent requirement are less reliable and stable than the requirement quantity and date of a confirmed customer requirement. 

This relatively stable system now faces increasing volatility and complexity due to volatile demand and raw material prices as well as globalization in markets and company networks. Specifically, price-volatile commodity products within the chemical industry require planning volumes together with values across sales to procurement. In this context, the work of Matthias Kannegiesser focuses on two research questions ... 

Cause-effect-relations of these dynamics in the value chain may still be obvious, when operating a simple value chain comprising few products, locations and production steps. Considering the global multi-stage, multilocation value chain network, price changes in raw materials cannot directly be related to intermediate or even sales products and their prices. This problem requires specific planning models and methods. 

The problem to monthly plan a global value chain for commodities in the chemical industry puts specific requirements considering on the aspects of values, sales, distribution, production and procurement planning in a global network. Recent research related to value chain planning can be clustered into global-oriented, chemical industry-oriented or commodity-oriented research. 

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