Optimal sales and operations planning for integrated steel industries

J. F. F. Almeida (), S. V. Conceição, L. R. Pinto, B. R. P. Oliveira and L. F. Rodrigues
Additional contact information
J. F. F. Almeida: Universidade Federal de Minas Gerais
S. V. Conceição: Universidade Federal de Minas Gerais
L. R. Pinto: Universidade Federal de Minas Gerais
B. R. P. Oliveira: Instituto Federal de Minas Gerais
L. F. Rodrigues: Universidade Federal de Minas Gerais

Annals of Operations Research, 2022, vol. 315, issue 2, No 7, 773-790

Abstract: Abstract This paper aims at inspiring a change in the traditional approach of sales and operations planning (S&OP) of integrated steel industries that have reached a maturity planning level allowing the use of sophisticated technologies. Therefore, we propose a two-stage stochastic programming model suitable for reproducing the rolling horizon framework of tactical planning. Simulations of one year of operations in an integrated steel industry showed a potential improvement of about 15% on overall supply chain profit in comparison with a plan produced traditionally. Besides, we evaluated two scenarios to analyze the effects of a flexible plan when facing a tax raise and a capacity reduction. As a practical implication, the model provides a consensus view of the S&OP stages at once, supporting top managers to make better decisions. The two-stage modeling approach also reinforces the need for interaction of the sales team with procurement, production, and distribution teams.

Keywords: Sales and operations planning; Stochastic programming; Supply chain planning; Case study (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10479-020-03928-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:315:y:2022:i:2:d:10.1007_s10479-020-03928-7

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-020-03928-7

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().