Scenario Analysis for S&OP

This article shows how scenario analysis can be effectively used in the framework of S&OP to manage issues that are very complex and involved. The basic steps are, first, to know where you are and where you want to be, next, what options are open and their expected outcome, and then choosing the one that is likely to optimize the outcome. LILLIAN WARREN | Ms. Warren is the Chief Operating Officer at Portfolio Decisions, Inc. She has extensive experience in designing and deploying complex systems that affect business processes, culture, and information technology. Since 1990, she has focused on the process issues and transition management of companies with significant business changes. Prior to joining Portfolio Decisions, she worked for IBM Global Services and Computer Sciences Corporation where she advised clients in finance, manufacturing, and energy sectors. She has an MBA from the University of Tennessee at Knoxville. T T oday’s business environment is becoming ever more volatile and complex. Market dynamics are changing rapidly and lead times required to respond are weeks or days, not years and months. The more your business experiences supply side volatility, demand ...