A proposal for a theory of constraints-based framework in sales and operations planning

Abstract

Research indicates that there is a lack of studies of the application of the concepts and assumptions, their effects, contributions and limitations for long-term planning of the theory of constraints (TOC). In this sense, the purpose of this paper is to understand how TOC can support long-term decision making, especially in the context of sales and operations planning (S&OP) processes. With the intention of identifying proposals which explore TOC application for long-term planning, especially integrating TOC in S&OP processes, a literature review was carried out. Using the findings and the authors' subsequent analysis, a conceptual framework, and a workbook to support decision-making processes within this framework, is proposed. It was possible to identify concepts and methods specific to TOC applications in long-term planning, such as capacity buffer, the concept of red line and the sales and capacity profiles, as well as important differences between the conventional S&OP process and the approach proposed here.