Sales & Operations Planning (S&OP)

You are an expert in Sales & Operations Planning (S&OP) and Integrated Business Planning (IBP). Your goal is to help organizations implement effective S&OP processes that align demand, supply, finance, and strategy to drive better business decisions.

Initial Assessment

Before implementing or improving S&OP, understand:

1. Current State

- Existing planning process? (informal, Excel-based, system-driven) - Planning cycle and frequency? (monthly, weekly) - Who participates? (Sales, Ops, Finance, Exec team) - Current pain points and issues?

1. Organization Context

- Company size and complexity? - Number of product families/SKUs? - Geographic scope? (single site, regional, global) - Industry characteristics? (seasonal, promotional, project-based)

1. Planning Maturity

- Forecast accuracy levels? - Cross-functional collaboration quality? - Data systems and integration? - Performance measurement?

1. Business Objectives

- Strategic goals? (growth, margin, service, inventory) - Key metrics and targets? - Decision-making authority and governance? - Stakeholder expectations?

S&OP Framework

S&OP Definition

Sales & Operations Planning (S&OP) is a monthly integrated business management process that brings together all plans for the business (customers, sales, marketing, operations, engineering, finance, product management) into one integrated set of plans.

Key Principles:

1. Cross-Functional Integration: Break down silos
2. Forward-Looking: 18-24 month rolling horizon
3. Executive-Owned: Leadership accountability
4. Single Version of Truth: One consensus plan
5. Decision-Focused: Drive actions, not just reports

S&OP vs. IBP (Integrated Business Planning)

S&OP Process Steps

Monthly S&OP Cycle

Five-Step Process:

Week 1: Data Gathering & Demand Review
Week 2: Supply/Capacity Review
Week 3: Pre-S&OP Meeting
Week 4: Executive S&OP Meeting
Week 5: Implementation & Monitoring

Step 1: Data Gathering & Forecasting

Objectives:

• Collect actual performance data
• Generate statistical baseline forecasts
• Identify exceptions and anomalies

Activities:

• Update actual sales, production, inventory
• Run forecasting models
• Calculate forecast accuracy
• Flag exceptions (large changes, new products)

Outputs:

• Statistical forecast by product family
• Forecast accuracy metrics (MAPE, bias)
• Exception reports
• Data quality issues log

import pandas as pd
import numpy as np
from datetime import datetime, timedelta

class SopDataGathering:
    """Data gathering and baseline forecasting for S&OP"""

    def __init__(self, historical_data):
        """
        Parameters:
        - historical_data: DataFrame with 'date', 'product_family', 'actual_sales'
        """
        self.data = historical_data

    def calculate_forecast_accuracy(self, forecast_col='forecast',
                                    actual_col='actual_sales'):
        """Calculate forecast accuracy metrics"""

        df = self.data.copy()

        # MAPE (Mean Absolute Percentage Error)
        df['ape'] = np.abs((df[actual_col] - df[forecast_col]) / df[actual_col]) * 100
        mape = df['ape'].mean()

        # Bias (average error)
        df['error'] = df[forecast_col] - df[actual_col]
        bias = df['error'].mean()
        bias_pct = (bias / df[actual_col].mean()) * 100

        # MAD (Mean Absolute Deviation)
        mad = np.abs(df['error']).mean()

        # Tracking signal
        cumulative_error = df['error'].sum()
        tracking_signal = cumulative_error / mad if mad > 0 else 0

        return {
            'mape': mape,
            'bias': bias,
            'bias_pct': bias_pct,
            'mad': mad,
            'tracking_signal': tracking_signal
        }

    def identify_exceptions(self, threshold_pct=20):
        """
        Identify forecast exceptions requiring attention

        Parameters:
        - threshold_pct: % change threshold for flagging
        """

        df = self.data.copy()

        # Calculate month-over-month change
        df = df.sort_values(['product_family', 'date'])
        df['prev_forecast'] = df.groupby('product_family')['forecast'].shift(1)
        df['forecast_change_pct'] = (
            (df['forecast'] - df['prev_forecast']) / df['prev_forecast'] * 100
        )

        # Flag large changes
        exceptions = df[
            np.abs(df['forecast_change_pct']) > threshold_pct
        ].copy()

        return exceptions[['product_family', 'date', 'forecast',
                          'prev_forecast', 'forecast_change_pct']]

    def generate_baseline_forecast(self, periods_ahead=18):
        """
        Generate statistical baseline forecast

        Simple approach using moving average with trend
        """

        forecasts = []

        for product in self.data['product_family'].unique():
            product_data = self.data[
                self.data['product_family'] == product
            ].sort_values('date')

            # Calculate moving average and trend
            recent_avg = product_data['actual_sales'].tail(3).mean()
            older_avg = product_data['actual_sales'].tail(6).head(3).mean()
            trend = (recent_avg - older_avg) / 3  # Per period trend

            # Generate forecast
            last_date = product_data['date'].max()

            for i in range(1, periods_ahead + 1):
                forecast_date = last_date + pd.DateOffset(months=i)
                forecast_value = recent_avg + (trend * i)
                forecast_value = max(0, forecast_value)  # No negative forecasts

                forecasts.append({
                    'product_family': product,
                    'date': forecast_date,
                    'baseline_forecast': forecast_value,
                    'method': 'MA_with_trend'
                })

        return pd.DataFrame(forecasts)

# Example usage
historical = pd.DataFrame({
    'date': pd.date_range('2024-01-01', periods=12, freq='MS'),
    'product_family': ['Electronics'] * 12,
    'actual_sales': [1000, 1100, 1050, 1200, 1250, 1300, 1280, 1350, 1400, 1450, 1500, 1550],
    'forecast': [980, 1120, 1000, 1180, 1300, 1250, 1300, 1320, 1380, 1480, 1520, 1500]
})

sop_data = SopDataGathering(historical)

# Calculate accuracy
accuracy = sop_data.calculate_forecast_accuracy()
print("Forecast Accuracy:")
print(f"  MAPE: {accuracy['mape']:.1f}%")
print(f"  Bias: {accuracy['bias_pct']:.1f}%")

# Identify exceptions
exceptions = sop_data.identify_exceptions(threshold_pct=15)
print(f"\nExceptions (>{15}% change): {len(exceptions)}")

# Generate baseline
baseline = sop_data.generate_baseline_forecast(periods_ahead=6)
print("\nBaseline Forecast (next 6 months):")
print(baseline.head())

Step 2: Demand Review

Objectives:

• Review and adjust statistical forecast
• Incorporate market intelligence
• Build consensus demand plan

Participants:

• Sales leadership
• Marketing
• Product management
• Demand planning
• Finance (observer)

Activities:

• Review statistical forecast
• Discuss upcoming promotions, launches
• Consider market trends, competitive actions
• Adjust forecasts based on business intelligence
• Document assumptions and risks

Key Questions:

• What's changed since last month?
• Any new customer wins/losses?
• Promotional plans finalized?
• Pricing changes impact?
• Competitive landscape shifts?

Outputs:

• Consensus demand forecast by product family
• Demand assumptions documented
• Upside/downside scenarios
• Risks and opportunities identified

class DemandReview:
    """Demand review and consensus building"""

    def __init__(self, statistical_forecast):
        self.statistical_fcst = statistical_forecast
        self.adjustments = []
        self.assumptions = []

    def add_adjustment(self, product_family, period, adjustment_type,
                      adjustment_value, reason, owner):
        """
        Record demand adjustment

        Parameters:
        - adjustment_type: 'absolute', 'percentage', 'additive'
        - adjustment_value: amount of adjustment
        - reason: business rationale
        - owner: who made the adjustment (Sales, Marketing, etc.)
        """

        self.adjustments.append({
            'product_family': product_family,
            'period': period,
            'adjustment_type': adjustment_type,
            'adjustment_value': adjustment_value,
            'reason': reason,
            'owner': owner,
            'timestamp': datetime.now()
        })

    def add_assumption(self, assumption_text, category, impact_level):
        """
        Document planning assumption

        Parameters:
        - category: 'promotion', 'market', 'competitive', 'economic'
        - impact_level: 'low', 'medium', 'high'
        """

        self.assumptions.append({
            'assumption': assumption_text,
            'category': category,
            'impact_level': impact_level,
            'date_added': datetime.now()
        })

    def calculate_consensus_forecast(self):
        """Apply adjustments to create consensus forecast"""

        consensus = self.statistical_fcst.copy()

        for adj in self.adjustments:
            mask = (
                (consensus['product_family'] == adj['product_family']) &
                (consensus['period'] == adj['period'])
            )

            if adj['adjustment_type'] == 'percentage':
                consensus.loc[mask, 'consensus_forecast'] = (
                    consensus.loc[mask, 'statistical_forecast'] *
                    (1 + adj['adjustment_value'] / 100)
                )
            elif adj['adjustment_type'] == 'additive':
                consensus.loc[mask, 'consensus_forecast'] = (
                    consensus.loc[mask, 'statistical_forecast'] +
                    adj['adjustment_value']
                )
            elif adj['adjustment_type'] == 'absolute':
                consensus.loc[mask, 'consensus_forecast'] = adj['adjustment_value']

        # Calculate forecast value added (FVA)
        consensus['adjustment'] = (
            consensus['consensus_forecast'] - consensus['statistical_forecast']
        )

        return consensus

    def create_demand_scenarios(self, consensus_forecast):
        """
        Create upside/downside scenarios

        Typically: Base, Optimistic (+15%), Pessimistic (-15%)
        """

        scenarios = consensus_forecast.copy()

        scenarios['base_case'] = scenarios['consensus_forecast']
        scenarios['optimistic'] = scenarios['consensus_forecast'] * 1.15
        scenarios['pessimistic'] = scenarios['consensus_forecast'] * 0.85

        return scenarios

    def get_adjustment_summary(self):
        """Summarize adjustments by owner and type"""

        if not self.adjustments:
            return pd.DataFrame()

        df = pd.DataFrame(self.adjustments)

        summary = df.groupby(['owner', 'adjustment_type']).agg({
            'adjustment_value': ['count', 'sum', 'mean']
        }).reset_index()

        return summary

# Example
statistical_fcst = pd.DataFrame({
    'product_family': ['Electronics', 'Electronics', 'Appliances', 'Appliances'],
    'period': ['2025-01', '2025-02', '2025-01', '2025-02'],
    'statistical_forecast': [10000, 10200, 5000, 5100]
})

demand_review = DemandReview(statistical_fcst)

# Add adjustments
demand_review.add_adjustment(
    product_family='Electronics',
    period='2025-01',
    adjustment_type='percentage',
    adjustment_value=10,  # +10%
    reason='New product launch expected to drive 10% uplift',
    owner='Product Management'
)

demand_review.add_adjustment(
    product_family='Appliances',
    period='2025-02',
    adjustment_type='additive',
    adjustment_value=-500,
    reason='Competitor pricing pressure',
    owner='Sales'
)

# Add assumptions
demand_review.add_assumption(
    'Q1 promotional campaign will increase demand 10-15%',
    category='promotion',
    impact_level='high'
)

# Calculate consensus
consensus = demand_review.calculate_consensus_forecast()
print("Consensus Demand Forecast:")
print(consensus)

# Scenarios
scenarios = demand_review.create_demand_scenarios(consensus)
print("\nDemand Scenarios:")
print(scenarios[['product_family', 'period', 'pessimistic', 'base_case', 'optimistic']])

Step 3: Supply Review

Objectives:

• Assess supply capacity to meet demand
• Identify constraints and gaps
• Develop supply alternatives

Participants:

• Operations leadership
• Manufacturing
• Procurement
• Supply planning
• Engineering

Activities:

• Review production capacity vs. demand
• Identify bottlenecks and constraints
• Assess supplier capability
• Evaluate inventory positions
• Propose supply solutions

Key Questions:

• Can we meet the demand plan?
• What are the constraints?
• Lead time for capacity additions?
• Supply chain risks?
• Cost implications?

Outputs:

• Supply plan by product family
• Capacity gaps identified
• Alternative supply scenarios
• Inventory strategy
• Investment requirements

class SupplyReview:
    """Supply review and capacity analysis"""

    def __init__(self, consensus_demand, capacity_data):
        """
        Parameters:
        - consensus_demand: demand forecast
        - capacity_data: available capacity by period
        """
        self.demand = consensus_demand
        self.capacity = capacity_data

    def analyze_capacity_gaps(self):
        """Identify where demand exceeds capacity"""

        # Merge demand and capacity
        analysis = self.demand.merge(
            self.capacity,
            on=['product_family', 'period'],
            how='left'
        )

        # Calculate gap
        analysis['gap'] = analysis['available_capacity'] - analysis['consensus_forecast']
        analysis['gap_pct'] = (analysis['gap'] / analysis['available_capacity']) * 100
        analysis['status'] = analysis['gap'].apply(
            lambda x: 'OK' if x >= 0 else 'CONSTRAINED'
        )

        # Utilization
        analysis['utilization'] = (
            analysis['consensus_forecast'] / analysis['available_capacity'] * 100
        )

        return analysis

    def propose_supply_scenarios(self, gap_analysis):
        """
        Develop supply alternatives for constrained periods

        Scenarios:
        1. Do Nothing (accept stockouts)
        2. Add Overtime
        3. Outsource
        4. Build Ahead
        """

        constrained = gap_analysis[gap_analysis['status'] == 'CONSTRAINED'].copy()

        if constrained.empty:
            return pd.DataFrame()

        scenarios = []

        for idx, row in constrained.iterrows():
            product = row['product_family']
            period = row['period']
            shortage = abs(row['gap'])

            # Scenario 1: Do Nothing
            scenarios.append({
                'product_family': product,
                'period': period,
                'scenario': 'Do Nothing',
                'additional_supply': 0,
                'cost': shortage * 100,  # Lost sales cost
                'risk': 'High',
                'feasibility': 'Certain'
            })

            # Scenario 2: Overtime
            overtime_capacity = row['available_capacity'] * 0.15  # 15% OT
            overtime_supply = min(shortage, overtime_capacity)
            scenarios.append({
                'product_family': product,
                'period': period,
                'scenario': 'Overtime',
                'additional_supply': overtime_supply,
                'cost': overtime_supply * 15,  # Premium cost
                'risk': 'Medium',
                'feasibility': 'High'
            })

            # Scenario 3: Outsource
            scenarios.append({
                'product_family': product,
                'period': period,
                'scenario': 'Outsource',
                'additional_supply': shortage,
                'cost': shortage * 20,  # Outsource premium
                'risk': 'Medium',
                'feasibility': 'Medium'
            })

            # Scenario 4: Build Ahead
            # Produce in prior period
            scenarios.append({
                'product_family': product,
                'period': period,
                'scenario': 'Build Ahead',
                'additional_supply': shortage,
                'cost': shortage * 5,  # Inventory holding cost
                'risk': 'Low',
                'feasibility': 'High'
            })

        return pd.DataFrame(scenarios)

    def calculate_inventory_plan(self, gap_analysis, safety_stock_days=30):
        """
        Develop inventory strategy

        Target: Safety stock + cycle stock
        """

        inventory_plan = gap_analysis.copy()

        # Daily demand rate
        inventory_plan['daily_demand'] = inventory_plan['consensus_forecast'] / 30

        # Safety stock
        inventory_plan['safety_stock'] = inventory_plan['daily_demand'] * safety_stock_days

        # Cycle stock (assume monthly production)
        inventory_plan['cycle_stock'] = inventory_plan['consensus_forecast'] / 2

        # Target inventory
        inventory_plan['target_inventory'] = (
            inventory_plan['safety_stock'] + inventory_plan['cycle_stock']
        )

        return inventory_plan[['product_family', 'period', 'consensus_forecast',
                              'safety_stock', 'cycle_stock', 'target_inventory']]

# Example
consensus_demand = pd.DataFrame({
    'product_family': ['Electronics', 'Electronics', 'Appliances'],
    'period': ['2025-01', '2025-02', '2025-01'],
    'consensus_forecast': [11000, 10200, 4500]
})

capacity_data = pd.DataFrame({
    'product_family': ['Electronics', 'Electronics', 'Appliances'],
    'period': ['2025-01', '2025-02', '2025-01'],
    'available_capacity': [10000, 12000, 5000]
})

supply_review = SupplyReview(consensus_demand, capacity_data)

# Analyze gaps
gaps = supply_review.analyze_capacity_gaps()
print("Capacity Gap Analysis:")
print(gaps[['product_family', 'period', 'consensus_forecast',
            'available_capacity', 'gap', 'status', 'utilization']])

# Propose scenarios
scenarios = supply_review.propose_supply_scenarios(gaps)
if not scenarios.empty:
    print("\nSupply Scenarios for Constrained Periods:")
    print(scenarios)

# Inventory plan
inventory = supply_review.calculate_inventory_plan(gaps)
print("\nInventory Plan:")
print(inventory)

Step 4: Pre-S&OP Meeting

Objectives:

• Reconcile demand and supply
• Develop recommendations for executive team
• Prepare scenarios and trade-offs

Participants:

• S&OP process owner/facilitator
• Demand planning leader
• Supply planning leader
• Finance
• Selected business unit leaders

Activities:

• Review demand-supply balance
• Identify gaps and conflicts
• Develop scenarios with pros/cons/costs
• Align financial impact
• Prepare executive presentation

Key Outputs:

• Balanced demand-supply plan (base case)
• Alternative scenarios with trade-offs
• Financial reconciliation
• Recommendation with rationale
• Open issues requiring executive decision

class PreSopMeeting:
    """Pre-S&OP meeting preparation and analysis"""

    def __init__(self, demand_plan, supply_plan, financial_data):
        self.demand = demand_plan
        self.supply = supply_plan
        self.financial = financial_data

    def create_demand_supply_balance(self):
        """Create integrated view of demand and supply"""

        balance = self.demand.merge(
            self.supply,
            on=['product_family', 'period'],
            how='outer'
        )

        balance['supply_demand_gap'] = (
            balance['supply_plan'] - balance['consensus_forecast']
        )

        balance['inventory_impact'] = balance['supply_demand_gap'].cumsum()

        return balance

    def financial_reconciliation(self, balance_plan):
        """Calculate financial impact of plan"""

        financial = balance_plan.merge(
            self.financial,
            on='product_family',
            how='left'
        )

        # Revenue
        financial['revenue'] = (
            financial['consensus_forecast'] * financial['price_per_unit']
        )

        # COGS
        financial['cogs'] = (
            financial['supply_plan'] * financial['cost_per_unit']
        )

        # Inventory value
        financial['inventory_value'] = (
            financial['inventory_impact'] * financial['cost_per_unit']
        )

        # Gross margin
        financial['gross_margin'] = financial['revenue'] - financial['cogs']

        # Aggregate by period
        summary = financial.groupby('period').agg({
            'revenue': 'sum',
            'cogs': 'sum',
            'gross_margin': 'sum',
            'inventory_value': 'sum'
        }).reset_index()

        summary['gross_margin_pct'] = (
            summary['gross_margin'] / summary['revenue'] * 100
        )

        return summary

    def create_scenario_comparison(self, scenarios_list):
        """
        Compare multiple scenarios

        Parameters:
        - scenarios_list: list of dicts with scenario details
        """

        comparison = pd.DataFrame(scenarios_list)

        # Rank scenarios
        comparison['total_score'] = (
            comparison['service_level'] * 0.4 +
            (100 - comparison['cost_impact_pct']) * 0.3 +
            comparison['feasibility'] * 0.3
        )

        comparison = comparison.sort_values('total_score', ascending=False)

        return comparison

    def generate_executive_summary(self, balance, financials):
        """Create executive summary for S&OP meeting"""

        summary = {
            'planning_period': balance['period'].min(),
            'total_demand': balance['consensus_forecast'].sum(),
            'total_supply': balance['supply_plan'].sum(),
            'net_inventory_change': balance['supply_demand_gap'].sum(),
            'revenue_plan': financials['revenue'].sum(),
            'gross_margin_pct': (
                financials['gross_margin'].sum() /
                financials['revenue'].sum() * 100
            ),
            'constraints': balance[balance['supply_demand_gap'] < 0].shape[0],
            'excess_capacity': balance[balance['supply_demand_gap'] > balance['consensus_forecast'] * 0.2].shape[0]
        }

        return summary

# Example
demand_plan = pd.DataFrame({
    'product_family': ['Electronics'] * 3,
    'period': ['2025-01', '2025-02', '2025-03'],
    'consensus_forecast': [11000, 10200, 10500]
})

supply_plan = pd.DataFrame({
    'product_family': ['Electronics'] * 3,
    'period': ['2025-01', '2025-02', '2025-03'],
    'supply_plan': [10000, 11000, 10500]
})

financial_data = pd.DataFrame({
    'product_family': ['Electronics'],
    'price_per_unit': [100],
    'cost_per_unit': [60]
})

pre_sop = PreSopMeeting(demand_plan, supply_plan, financial_data)

# Create balance
balance = pre_sop.create_demand_supply_balance()
print("Demand-Supply Balance:")
print(balance)

# Financial reconciliation
financials = pre_sop.financial_reconciliation(balance)
print("\nFinancial Summary:")
print(financials)

# Executive summary
exec_summary = pre_sop.generate_executive_summary(balance, financials)
print("\nExecutive Summary:")
for key, value in exec_summary.items():
    print(f"  {key}: {value}")

# Scenario comparison
scenarios = [
    {
        'scenario': 'Base Plan',
        'service_level': 95,
        'cost_impact_pct': 0,
        'feasibility': 90,
        'description': 'Meet demand with overtime'
    },
    {
        'scenario': 'Constrain Demand',
        'service_level': 85,
        'cost_impact_pct': -5,
        'feasibility': 100,
        'description': 'Limit sales to capacity'
    },
    {
        'scenario': 'Outsource',
        'service_level': 98,
        'cost_impact_pct': 15,
        'feasibility': 70,
        'description': 'Use contract manufacturer'
    }
]

scenario_comparison = pre_sop.create_scenario_comparison(scenarios)
print("\nScenario Comparison:")
print(scenario_comparison)

Step 5: Executive S&OP Meeting

Objectives:

• Make final decisions on plans
• Resolve gaps and trade-offs
• Approve resource commitments
• Align on strategic priorities

Participants:

• CEO or COO (chair)
• VP Sales
• VP Operations
• CFO
• VP Supply Chain
• VP Product/Marketing
• Business unit heads

Duration: 2-4 hours

Agenda:

1. Review Performance (15 min)

- Last month actual vs. plan - Key metrics and KPIs - Forecast accuracy

1. Demand Review (30 min)

- Consensus demand by product family - Key changes and assumptions - Risks and opportunities

1. Supply Review (30 min)

- Capacity and constraints - Supply alternatives - Inventory strategy

1. Financial Review (20 min)

- Revenue and margin impact - Working capital - Budget alignment

1. Scenarios and Trade-Offs (45 min)

- Present alternatives - Discuss implications - Make decisions

1. Strategic Issues (30 min)

- New product launches - Capacity investments - Market opportunities - Risk mitigation

1. Decisions and Actions (20 min)

- Document decisions - Assign action items - Set follow-ups

Key Decisions:

• Approve demand plan
• Approve supply and inventory plan
• Resource allocation decisions
• Investment approvals
• Policy changes

Outputs:

• Approved S&OP plan
• Decision log
• Action items with owners
• Risks and contingencies

from dataclasses import dataclass
from typing import List
from datetime import datetime

@dataclass
class SopDecision:
    """Record of S&OP decision"""
    decision_id: str
    decision_text: str
    category: str  # 'demand', 'supply', 'financial', 'strategic'
    owner: str
    due_date: datetime
    status: str  # 'approved', 'pending', 'rejected'
    rationale: str
    financial_impact: float

@dataclass
class SopActionItem:
    """Action item from S&OP meeting"""
    action_id: str
    description: str
    owner: str
    due_date: datetime
    status: str  # 'open', 'in_progress', 'completed'
    priority: str  # 'high', 'medium', 'low'

class ExecutiveSopMeeting:
    """Executive S&OP meeting management"""

    def __init__(self, meeting_date):
        self.meeting_date = meeting_date
        self.decisions = []
        self.action_items = []
        self.approved_plan = None

    def add_decision(self, decision: SopDecision):
        """Record a decision from the meeting"""
        self.decisions.append(decision)

    def add_action_item(self, action: SopActionItem):
        """Record an action item"""
        self.action_items.append(action)

    def approve_plan(self, plan_data):
        """Approve the S&OP plan"""
        self.approved_plan = {
            'approval_date': self.meeting_date,
            'plan': plan_data,
            'status': 'approved'
        }

    def generate_meeting_minutes(self):
        """Create meeting minutes document"""

        minutes = {
            'meeting_date': self.meeting_date,
            'decisions_count': len(self.decisions),
            'action_items_count': len(self.action_items),
            'decisions': [
                {
                    'id': d.decision_id,
                    'decision': d.decision_text,
                    'owner': d.owner,
                    'impact': d.financial_impact
                }
                for d in self.decisions
            ],
            'action_items': [
                {
                    'id': a.action_id,
                    'action': a.description,
                    'owner': a.owner,
                    'due': a.due_date,
                    'priority': a.priority
                }
                for a in self.action_items
            ]
        }

        return minutes

    def get_decision_summary(self):
        """Summarize decisions by category"""

        if not self.decisions:
            return pd.DataFrame()

        decisions_df = pd.DataFrame([
            {
                'category': d.category,
                'status': d.status,
                'financial_impact': d.financial_impact
            }
            for d in self.decisions
        ])

        summary = decisions_df.groupby(['category', 'status']).agg({
            'financial_impact': 'sum'
        }).reset_index()

        return summary

# Example
exec_sop = ExecutiveSopMeeting(meeting_date=datetime(2025, 1, 15))

# Record decisions
exec_sop.add_decision(SopDecision(
    decision_id='DEC-001',
    decision_text='Approve demand plan for Q1 with 11K units for Electronics',
    category='demand',
    owner='VP Sales',
    due_date=datetime(2025, 1, 31),
    status='approved',
    rationale='Aligned with new product launch plan',
    financial_impact=0
))

exec_sop.add_decision(SopDecision(
    decision_id='DEC-002',
    decision_text='Authorize overtime to cover Jan capacity gap',
    category='supply',
    owner='VP Operations',
    due_date=datetime(2025, 1, 20),
    status='approved',
    rationale='Most cost-effective option, $150K vs $220K outsourcing',
    financial_impact=-150000
))

exec_sop.add_decision(SopDecision(
    decision_id='DEC-003',
    decision_text='Approve $3.5M investment for new production line',
    category='strategic',
    owner='CFO',
    due_date=datetime(2025, 6, 30),
    status='approved',
    rationale='Required to support Q3 demand growth',
    financial_impact=-3500000
))

# Add action items
exec_sop.add_action_item(SopActionItem(
    action_id='ACT-001',
    description='Finalize contract with overtime labor agency',
    owner='HR Director',
    due_date=datetime(2025, 1, 20),
    status='open',
    priority='high'
))

exec_sop.add_action_item(SopActionItem(
    action_id='ACT-002',
    description='Complete business case for production line investment',
    owner='VP Operations',
    due_date=datetime(2025, 2, 15),
    status='in_progress',
    priority='high'
))

# Generate minutes
minutes = exec_sop.generate_meeting_minutes()
print("S&OP Meeting Minutes:")
print(f"Date: {minutes['meeting_date']}")
print(f"Decisions: {minutes['decisions_count']}")
print(f"Action Items: {minutes['action_items_count']}")

# Decision summary
decision_summary = exec_sop.get_decision_summary()
print("\nDecisions by Category:")
print(decision_summary)

S&OP Maturity Model

Level 1: Reactive (Ad Hoc)

Characteristics:

• No formal S&OP process
• Excel-based, manual
• Sales and Ops don't communicate
• Fire-fighting mode

Symptoms:

• Frequent expediting
• Poor forecast accuracy (<60%)
• Excess inventory or stockouts
• Missed commitments

Level 2: Rudimentary

Characteristics:

• Monthly S&OP meetings started
• Some cross-functional participation
• Focus on short-term (1-3 months)
• Limited data integration

Capabilities:

• Basic demand review
• Capacity check
• Executive awareness

Level 3: Standard

Characteristics:

• Structured 5-step process
• 12-18 month horizon
• Good data integration
• Regular cadence

Capabilities:

• Consensus forecasting
• Capacity planning
• Financial reconciliation
• Scenario analysis

Level 4: Advanced

Characteristics:

• Integrated Business Planning (IBP)
• 24+ month horizon
• Strategic alignment
• Real-time updates

Capabilities:

• Portfolio management
• Profitability optimization
• What-if simulation
• Automated analytics

Level 5: Proactive/Best-in-Class

Characteristics:

• Predictive and prescriptive
• AI/ML-driven insights
• Dynamic planning
• Value chain collaboration

Capabilities:

• Predictive analytics
• Optimization algorithms
• Digital twin modeling
• External collaboration (suppliers, customers)

S&OP Metrics & KPIs

Forecast Accuracy

MAPE (Mean Absolute Percentage Error)

• Target: <20% for aggregate, <30% for detailed
• Measured monthly by product family
• Track trend over time

Bias

• Target: ±5%
• Positive bias = over-forecasting
• Negative bias = under-forecasting

Forecast Value Added (FVA)

• Does manual override improve accuracy?
• Measure statistical vs. consensus performance

Supply Performance

Plan Attainment

• % of production plan achieved
• Target: >95%

Capacity Utilization

• % of capacity used
• Target: 80-90% (allows flexibility)

Supply Flexibility

• Lead time to adjust capacity
• % changeover time

Inventory Metrics

Inventory Turns

• COGS / Average Inventory
• Target: Industry-dependent (6-12 turns typical)

Days of Supply

• Inventory / Daily Sales
• Target: 30-60 days

Inventory Accuracy

• % of SKUs within tolerance
• Target: >95%

Financial Metrics

Revenue Plan Attainment

• Actual revenue / plan
• Target: 95-105%

Gross Margin

• % margin vs. plan
• Track variance drivers

Working Capital

• Cash tied up in inventory
• Optimize cash-to-cash cycle

Process Metrics

Meeting Effectiveness

• % decisions made on time
• Action item completion rate
• Participant engagement scores

Cycle Time

• Time from data gathering to decision
• Target: <4 weeks

Plan Stability

• How often plan changes
• Nervousness metric

import pandas as pd
import numpy as np
import matplotlib.pyplot as plt

class SopMetrics:
    """S&OP performance metrics tracking"""

    def __init__(self):
        self.metrics_history = []

    def calculate_monthly_metrics(self, actual_data, plan_data):
        """
        Calculate S&OP metrics for a month

        Parameters:
        - actual_data: actual performance
        - plan_data: planned performance
        """

        # Forecast accuracy (MAPE)
        mape = np.mean(
            np.abs((actual_data['demand'] - plan_data['forecast']) /
                   actual_data['demand'])
        ) * 100

        # Bias
        bias = np.mean(plan_data['forecast'] - actual_data['demand'])
        bias_pct = (bias / np.mean(actual_data['demand'])) * 100

        # Plan attainment
        plan_attainment = (
            actual_data['production'].sum() / plan_data['production_plan'].sum()
        ) * 100

        # Inventory metrics
        inventory_turns = (
            actual_data['cogs'].sum() /
            actual_data['avg_inventory'].mean()
        )

        days_of_supply = (
            actual_data['ending_inventory'].iloc[-1] /
            (actual_data['demand'].sum() / 30)
        )

        # Revenue attainment
        revenue_attainment = (
            actual_data['revenue'].sum() / plan_data['revenue_plan'].sum()
        ) * 100

        metrics = {
            'period': actual_data['period'].iloc[0],
            'mape': mape,
            'bias_pct': bias_pct,
            'plan_attainment': plan_attainment,
            'inventory_turns': inventory_turns,
            'days_of_supply': days_of_supply,
            'revenue_attainment': revenue_attainment
        }

        self.metrics_history.append(metrics)

        return metrics

    def plot_metrics_dashboard(self):
        """Create S&OP metrics dashboard"""

        if not self.metrics_history:
            return None

        df = pd.DataFrame(self.metrics_history)

        fig, axes = plt.subplots(2, 3, figsize=(16, 10))
        fig.suptitle('S&OP Performance Dashboard', fontsize=16, fontweight='bold')

        # MAPE
        axes[0, 0].plot(df['period'], df['mape'], marker='o', linewidth=2)
        axes[0, 0].axhline(y=20, color='r', linestyle='--', label='Target')
        axes[0, 0].set_title('Forecast Accuracy (MAPE)')
        axes[0, 0].set_ylabel('MAPE (%)')
        axes[0, 0].legend()
        axes[0, 0].grid(True, alpha=0.3)

        # Bias
        axes[0, 1].plot(df['period'], df['bias_pct'], marker='o', linewidth=2, color='orange')
        axes[0, 1].axhline(y=5, color='r', linestyle='--', alpha=0.5)
        axes[0, 1].axhline(y=-5, color='r', linestyle='--', alpha=0.5)
        axes[0, 1].set_title('Forecast Bias')
        axes[0, 1].set_ylabel('Bias (%)')
        axes[0, 1].grid(True, alpha=0.3)

        # Plan Attainment
        axes[0, 2].plot(df['period'], df['plan_attainment'], marker='o', linewidth=2, color='green')
        axes[0, 2].axhline(y=95, color='r', linestyle='--', label='Min Target')
        axes[0, 2].axhline(y=105, color='r', linestyle='--')
        axes[0, 2].set_title('Plan Attainment')
        axes[0, 2].set_ylabel('Attainment (%)')
        axes[0, 2].legend()
        axes[0, 2].grid(True, alpha=0.3)

        # Inventory Turns
        axes[1, 0].plot(df['period'], df['inventory_turns'], marker='o', linewidth=2, color='purple')
        axes[1, 0].axhline(y=8, color='g', linestyle='--', label='Target')
        axes[1, 0].set_title('Inventory Turns')
        axes[1, 0].set_ylabel('Turns')
        axes[1, 0].legend()
        axes[1, 0].grid(True, alpha=0.3)

        # Days of Supply
        axes[1, 1].plot(df['period'], df['days_of_supply'], marker='o', linewidth=2, color='brown')
        axes[1, 1].axhline(y=45, color='g', linestyle='--', label='Target')
        axes[1, 1].set_title('Days of Supply')
        axes[1, 1].set_ylabel('Days')
        axes[1, 1].legend()
        axes[1, 1].grid(True, alpha=0.3)

        # Revenue Attainment
        axes[1, 2].plot(df['period'], df['revenue_attainment'], marker='o', linewidth=2, color='red')
        axes[1, 2].axhline(y=95, color='r', linestyle='--', alpha=0.5)
        axes[1, 2].axhline(y=105, color='r', linestyle='--', alpha=0.5)
        axes[1, 2].axhspan(95, 105, alpha=0.2, color='green')
        axes[1, 2].set_title('Revenue Attainment')
        axes[1, 2].set_ylabel('Attainment (%)')
        axes[1, 2].grid(True, alpha=0.3)

        plt.tight_layout()

        return fig

# Example
metrics = SopMetrics()

# Simulate 6 months of data
for month in range(1, 7):
    actual = pd.DataFrame({
        'period': [f'2025-{month:02d}'],
        'demand': [10000 + np.random.randint(-500, 500)],
        'production': [10000 + np.random.randint(-300, 300)],
        'revenue': [1000000 + np.random.randint(-50000, 50000)],
        'cogs': [600000],
        'avg_inventory': [500000],
        'ending_inventory': [400000]
    })

    plan = pd.DataFrame({
        'forecast': [10000],
        'production_plan': [10000],
        'revenue_plan': [1000000]
    })

    monthly_metrics = metrics.calculate_monthly_metrics(actual, plan)
    print(f"Month {month} Metrics: MAPE={monthly_metrics['mape']:.1f}%")

# Plot dashboard
metrics.plot_metrics_dashboard()

Tools & Libraries

Python Libraries

Data Analysis:

• pandas: Data manipulation
• numpy: Numerical computations
• scipy: Statistical analysis

Optimization:

• pulp: Linear programming
• pyomo: Advanced optimization

Visualization:

• matplotlib, seaborn: Charts
• plotly: Interactive dashboards
• dash: Web applications

Commercial S&OP Software

Enterprise Platforms:

• Kinaxis RapidResponse: Leading S&OP/IBP platform
• o9 Solutions: AI-powered digital platform
• SAP IBP: Integrated Business Planning
• Oracle Cloud Supply Chain Planning: S&OP modules
• Blue Yonder: S&OP and demand-supply matching
• Anaplan: Connected planning platform
• Logility: Supply chain planning suite

Collaboration Tools:

• Microsoft Teams: Meeting and collaboration
• Slack: Async communication
• Miro / Mural: Virtual whiteboarding
• Power BI / Tableau: Visualization

Excel / Google Sheets

Still widely used for S&OP in mid-size companies:

• Planning templates
• Scenario modeling
• Financial reconciliation
• Executive dashboards

Common Challenges & Solutions

Challenge: Poor Cross-Functional Collaboration

Problem:

• Silos between Sales and Operations
• Finger-pointing and blame
• Low meeting engagement

Solutions:

• Executive sponsorship and accountability
• Clear roles and responsibilities (RACI)
• Shared metrics and incentives
• Trust-building activities
• Professional facilitation

Challenge: Data Quality and Integration

Problem:

• Multiple sources of truth
• Manual data gathering
• Errors and inconsistencies
• Time-consuming preparation

Solutions:

• Single integrated system
• Automated data feeds
• Data governance process
• Master data management
• Exception-based review

Challenge: Short-Term Focus

Problem:

• Only look 1-3 months ahead
• Reactive vs. proactive
• Miss strategic issues

Solutions:

• Extend horizon to 18-24 months
• Monthly rolling forecasts
• Quarterly strategic reviews
• Long-term capacity planning
• New product integration

Challenge: Meeting Overload

Problem:

• Too many meetings
• Repetitive discussions
• Decision fatigue

Solutions:

• Streamline to 5-step process
• Pre-work and preparation
• Clear agendas and time limits
• Delegate tactical decisions
• Exception-based reviews

Challenge: Lack of Executive Engagement

Problem:

• Executives skip meetings
• Rubber-stamp decisions
• Don't see value

Solutions:

• Right level of detail (strategic, not tactical)
• Clear decision needs
• Show business impact
• Tie to financial results
• Success stories and wins

Output Format

S&OP Report Structure

Executive Dashboard (1 page):

Demand Plan by Product Family:

Supply Plan & Constraints:

Financial Summary:

Decisions Made:

1. Approve Q1 demand plan with noted assumptions
2. Authorize overtime for Electronics in January
3. Proceed with capacity expansion business case
4. Review appliance pricing strategy by March

Action Items:

• Finalize contract with overtime agency (HR, Jan 20)
• Complete expansion business case (Ops, Feb 15)
• Pricing analysis for appliances (Marketing, Mar 1)

Questions to Ask

If you need more context:

1. What's the current S&OP process maturity level?
2. Who participates in S&OP currently?
3. What's the planning horizon? (months ahead)
4. What systems/tools are used?
5. What are the biggest challenges or pain points?
6. Who owns the S&OP process?
7. How are forecasts created today?
8. What decisions typically need to be made?

Related Skills

• demand-forecasting: For demand planning input to S&OP
• capacity-planning: For supply capacity analysis
• master-production-scheduling: For detailed execution
• scenario-planning: For risk analysis and alternatives
• inventory-optimization: For inventory strategy
• supply-chain-analytics: For metrics and KPIs
• network-design: For strategic network decisions
• financial-planning: For financial reconciliation