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Does S&OP supports Shrinkage factor

in Supply Chain Planning and Collaboration 3 comments

Summary:

Does S&OP supports Shrinkage factor

Content (please ensure you mask any confidential information):

We understand that supply planning does honor the shrinkage factor and suggest planned orders considering it.

We have requirement to account for production scrap in S&OP. S&OP should suggest the production demand considering the shrinkage factor.

Does anyone has come across such scenario. If yes how did we tackle this with any workaround.

Thanks

Avinash

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