S&OP impact on inventory management in a Peruvian textile company

Small and medium-sized enterprises present with a set of problems due to improper supply chain planning; a relevant issue is inadequate inventory management due to poor demand forecasting accuracy. Consequently, this results in difficulties in effectively balancing supply and demand, which in turn means that areas such as purchasing, production, and inventories do not interrelate with one another, resulting in a negative economic impact. The proposal shown in this article is to apply the Sales and Operations Planning tool (S&OP) to a textile company, highlighting its potential impact on the company's inventories.