The student must then post 2 replies of at least 250 words by 11:59 p.m. (ET) on Sunday of the assigned Module: For each thread, students must support their assertions with at least 2 peer- reviewed j

The student must thenpost 2 replies of at least 250 words by 11:59 p.m. (ET) on Sunday of the assigned Module:

For each thread, students must support their assertions with at least 2 peer-reviewed journal articles in current APA format. The thread must include a reference list, andeach question/answer must be delineated under an APA heading. Each reply must demonstrate asubstantive discussion.

Reply # 1

What are some obstacles to creating a flexible workforce? What are the benefits?

Creating a flexible workforce is a win-win for both the employer and employee. When focusing on competitiveness, prioritizing operational goals to enhance employee productivity results in increased business growth and profits while creating employee opportunities (Abdelwahed and Doghan, 2023). For example, firms can implement flexible work hours to adjust current capacity with the demand (Copra, 2019). Implementing a flexible workforce approach enables a sense of employee autonomy that produces positive outcomes with employee satisfaction, retention, and overall work culture. In turn, having long-term staff strengthens scalability due to the staff’s vast knowledge and skillset.

On the other hand, there can be challenges that hinder a flexible workforce. With having a high level of flexibility, there can be resistance to implementing non-traditional practices. A clear communication protocol must be established to ensure adherence to guidelines and acknowledgment of goals and strategies. In addition, there can be production concerns if staff schedules do not evenly align with demand deadlines, creating an environment for backordered items, missed deadlines, and decreased revenue.  

Discuss why the use of subcontractors to handle peak demand can often allow a company to meet demand at lower cost even though the subcontractor price is higher than the average unit cost of the company.

            Subcontractors can help fill the gap with production, particularly during peak seasons. During this approach, subcontractors must be adaptable and have the capacity to decrease costs by sharing the fluctuations in demand amongst multiple manufacturers (Copra, 2019). Because the subcontractors are only utilized on an as needed basis, operational costs can be lowered due to less overhead. In addition, subcontractors often begin projects with a specialized skillset, but at a lower cost. Hence, decreasing the amount of training needed for subcontractor staff. With subcontractors taking on the additional demand, firms then have the capacity to sustain business relationships and meet production goals.

In which industries would you tend to see dual facility types (some facilities focusing on only one type of product and others able to produce a wide variety)? In which industries would this be relatively rare? Why?

Utilizing the dual facility approach emphasizes efficiency and flexibility with products. During the manufacturing process, product demand can change for some products or products have different processing routes which can affect cost optimization (You et al., 2020). For a beverage manufacturer, there can be consistent production of every main item in the business and have consistent sales throughout the entire year. However, during the holiday season there may be a need to produce holiday blend beverages and additional products at a flexible facility to accommodate the high demand during peak season.

            Even though dual facilities may be the answer for companies to respond accordingly to the market, it can create challenges in some industries. Specialized products can have low demand and limited flexibility. Production costs can increase due to the uniqueness of the specialized product. To remain cost effective, it is important to continue operations as they are designed with one facility concentrating on the supply network.

Discuss how you would set up a collaboration mechanism for the enterprises in a supply chain.

Communication is the foundation of successful collaborations. Communicating shared goals and objectives plays an essential role in ensuring the supply chain network operates smoothly. Clear and detailed communication creates transparency that is needed to keep all components informed of successes and challenges that occur throughout the process. Sharing the supply chain management process enhances the consumer’s connection, which has a positive impact on performance (Duan et al, 2022). A communication channel can be established to increase knowledge and define priorities that are key to meeting goals and driving sustainability. Aligning shared goals to the strategy and collectively making decisions sets the tone for an effective supply chain.

What are some product lines that use common parts across many products? What are the advantages of doing this?

Parts commonality supports optimization of product assembly, maximizes resources, and improves efficiency and cost effectiveness as products travel through the manufacturing steps (Zare et al., 2024). To increase productivity, car manufacturers use the same parts across multiple cars. In this instance, a car manufacturer can produce several types of cars. Despite the cars being different by name and style, there are some parts that are the same across all models. Clothing lines may also manufacture using the same material, buttons, or zippers across multiple designs. This cost-effective concept leverages time due to companies spending less time on ordering specific materials for each item and eases the inventory management processes.   

Discuss how a company can get sales and operations to work together with the common goal of coordinating supply and demand to maximize profitability.

Impactful collaboration elevates firms by leveraging resources that are beneficial within the supply chain network. Joining the perspectives of both the sales and operations departments invites each department to be thought partners when coordinating supply and demand needs. Collaboration focuses on project needs, which improves the chances of meeting deadlines (Heard-Lauréote & Buckley, 2021). Business performance is strengthened throughout the process when every division is dedicated to meeting the shared goal. According to Boubker et al. (2023), supply chain collaboration positively impacts supply chain performance and implementing collaborative measures helps navigate client demands. Defining specific times for cross collaboration is needed to accurately define goals and develop a plan of action to meet deliverables. Building and maintaining relationships amongst the sales and operations team further enables trust and flexibility when adjustments are needed. Working together as one team ensures that supply and demand needs are forecasted accurately, enabling less warehoused inventory and increased sales and profits.

How can a firm use pricing to change demand patterns?

Using historical trends and sales data will help guide forecasting, particularly during peak season. This provides firms with the knowledge needed to shift product demand via pricing. When firms are challenged with predictable variability there is a focus on balancing the projected supply with demand in order expand profitability (Copra, 2019). Peak or non-peak pricing and promotional sales or discounts help to equalize supply and demand by reducing the purchase price.

Why would a firm want to offer pricing promotions in its peak-demand periods?

Pricing promotions can keep the firms competitive during peak-demand periods. By increasing the demand, firms are able to alleviate concerns with overstocked items.  Enhancing price strategies and inventory management in addition to prioritizing sustainability efforts enhances the firm’s profitability and long-term success in a competitive industry (Keswani and  Khedlekar, 2024). Using price promotions during this time may increase sales amongst current customers and attract new customers.

Why would a firm want to offer pricing promotions during its low-demand periods?

Pricing strategies can change depending on peak demand or non-peak demand resulting in firms adjusting prices or promotions to appeal to budget friendly customers during low demand season (Haviv, 2022). Optimizing current inventory to strategically increase profits puts firms in a position to strengthen overall performance. This will produce a surge in sales that may be for a limited time, but the impact of a returning customer extends beyond the promotion. When price promotions are executed effectively and timely it increases reliability and consistency with customers.

References

Abdelwahed, N. A. A., & Doghan, M. A. A. (2023). Developing employee productivity and performance through work engagement and organizational factors in an educational society. Societies (Basel, Switzerland), 13(3), 65. doi:10.3390/soc13030065

Boubker, O., Naoui, K., Abdellaoui, M. E., & Lafdili, A. (2023). Delving into the nexus of collaboration and supply chain performance. Empirical evidence from automotive industry. LogForum., 19(3), 481–495. https://doi.org/10.17270/J.LOG.2023.864Links to an external site.

Chopra, S. (2019). Supply chain management: Strategy, planning, and operation (7th ed.). Pearson Education, Inc.

Duan, Y., Aloysius, J. A., & Mollenkopf, D. A. (2022). Communicating supply chain sustainability: transparency and framing effects. International Journal of Physical Distribution & Logistics Management, 52(1), 68–87. https://doi.org/10.1108/IJPDLM-04-2020-0107Links to an external site.

Haviv, A. (2022). Consumer Search, Price Promotions, and Counter-Cyclic Pricing. Marketing Science (Providence, R.I.), 41(2), 294–314. https://doi.org/10.1287/mksc.2021.1327Links to an external site.

Heard-Lauréote, K., & Buckley, C. (2021). "To be relied upon and trusted": The centrality of personal relationships to collaboration in he, in a successful cross-team institutional change project. Journal of University Teaching & Learning Practice, 18(7), 7–22. https://doi.org/10.53761/1.18.7.2Links to an external site.

Keswani, M., & Khedlekar, U. (2024). Optimizing pricing and promotions for sustained profitability in declining markets: A Green-Centric inventory model. Data Science in Finance and Economics, 4(1), 83–131. https://doi.org/10.3934/DSFE.2024004Links to an external site.

You, J., Li, M., Guo, K., & Li, H. (2020). Integrated Control Policy for a Multiple Machines and Multiple Product Types Manufacturing System Production Process with Uncertain Fault. Processes, 8(8), 952. https://doi.org/10.3390/pr8080952Links to an external site.

Zare, S., Fakhrzad, M. B., Khademi Zare, H., & Hosseini-Nasab, H. (2024). Partial Disassembly and Consideration of Part Relationships in Multiproduct, Multiperiod Capacitated Disassembly Scheduling With Parts Commonality. Modelling and Simulation in Engineering, 2024(1)https://doi.org/10.1155/2024/8416933Links to an external site.

Reply # 2 

Introduction

     Sales and operations planning (S&OP) has emerged as a vital cross-functional process in modern supply chain management, serving as a strategic link between demand forecasting, resource allocation, and organizational performance. As companies navigate increasingly volatile markets and complex global networks, the ability to align sales goals with operational capabilities has become a defining factor in sustaining competitive advantage. At its core, S&OP is not only a process for balancing supply and demand but also a mechanism for fostering collaboration across departments, improving visibility, and managing uncertainty. Recent research underscores the importance of S&OP culture and coordination mechanisms in shaping supply chain outcomes. Goh and Eldridge (2022) highlight how the behavioral and structural dimensions of S&OP influence its effectiveness, particularly when supported by robust internal communication and goal alignment. In addition, integrating risk management within the S&OP framework has gained attention as firms contend with labor shortages, fluctuating costs, and shifting consumer behavior. Kalla, Scavarda, and Hellingrath (2025) emphasize that proactive risk integration can enhance planning resilience and improve responsiveness in uncertain environments. Furthermore, Pacheco, Borgvardt, and Pergher (2025) propose a maturity model that illustrates how higher levels of S&OP integration lead to more agile and synchronized supply chain operations. These themes—coordination, risk mitigation, and process maturity—form the foundation for examining how organizations can utilize S&OP as a strategic capability to better manage complexity, reduce inefficiencies, and adapt to changing market dynamics.

Question 1: Which option delivers the maximum profit for the supply chain: Sandra’s plan, Bill’s plan, or no promotion plan at all? Assume ending inventory of 0.

     Sandra’s plan is the most profitable option because it shifts demand to a less constrained period, improving capacity utilization and reducing expensive overtime and subcontracting costs. Pacheco et al. (2025) highlight that mature S&OP processes enable organizations to balance demand and capacity effectively. Bill’s late promotion increases revenue but risks overwhelming production capacity, leading to higher operational costs and stockout risks, as noted by Kalla et al. (2025). No promotion maintains current margins but misses growth potential. Goh and Eldridge (2022) stress the importance of S&OP coordination mechanisms to align sales and operations. Therefore, Sandra’s plan, by smoothing demand and managing risk, better supports profitable supply chain performance.

Question 2: How does the answer change if a discount of $10 must be given to reach the same level of impact that the $5 discount received?

     If a $10 discount is required to achieve the same demand increase as the $5 discount, the profitability of both Sandra’s and Bill’s plans is likely to decrease significantly. The higher discount reduces the product’s margin, which can outweigh the benefits of increased sales volume. According to Pacheco et al. (2025), mature S&OP processes must carefully balance pricing strategies with cost control to maintain profitability. While demand smoothing remains beneficial, the increased discount expense may make Sandra’s plan less attractive. Bill’s plan, already riskier due to peak season capacity constraints, becomes even less profitable with the higher discount. No promotion, while forgoing demand growth, avoids margin erosion. Therefore, with a $10 discount, the no-promotion option may outperform both promotional strategies due to the substantial hit on profit margins.

Question 3: Suppose Sandra’s fears about increasing outsourcing costs come to fruition and the cost rises to $22/unit for subcontracting. Does this change the decision when the discount is $5?

     If subcontracting costs rise to $22/unit, Sandra’s plan becomes even more attractive. Higher outsourcing costs increase the financial penalty of relying on subcontractors during peak demand. Sandra’s promotion in September, which smooths demand, reduces the need for subcontracting in the busy months, directly lowering total costs. As Kalla et al. (2025) emphasize, integrating cost risk into S&OP decisions improves supply chain resilience and profitability. Bill’s plan, which pushes more demand into November and December, would increase expensive subcontracting and overtime costs, eroding margins further. Therefore, with higher subcontracting costs, Sandra’s demand-leveling approach better balances production capacity and cost management, making it the preferred strategy when offering a $5 discount.

Conclusion:

     Overall, the case of Mintendo’s Game Girl underscores how strategic S&OP decisions influence supply chain profitability and operational effectiveness. Sandra’s proposal to incentivize earlier purchases through a moderate discount leverages demand leveling, which mitigates peak season capacity constraints and high subcontracting costs. This strategy reflects best practices in S&OP maturity, where alignment between sales and operations fosters improved planning accuracy and cost control (Goh & Eldridge, 2022; Pacheco et al., 2025). Conversely, while Bill’s plan targets maximum revenue during peak demand, it risks escalating operational costs and undermining margins. The integration of risk management within S&OP processes, as highlighted by Kalla et al. (2025), further supports prioritizing demand smoothing over aggressive late-season promotions. Firms that develop these integrative capabilities can optimize supply chain performance in dynamic market environments.

References:

Goh, S. H., & Eldridge, S. (2022). Sales and operations planning culture and supply chain performance: the mediating effects of five coordination mechanisms. Production Planning & Control, 35(3), 225–237. https://doi.org/10.1080/09537287.2022.2069058Links to an external site.

Kalla, C., Scavarda, L. F., & Hellingrath, B. (2025). Integrating supply chain risk management activities into sales and operations planning. Review of Managerial Science, 19, 467–497. https://doi.org/10.1007/s11846-024-00656-6Links to an external site.

Pacheco, D. A. de J., Borgvardt, J. H., & Pergher, I. (2025). Enhancing sales and operations planning maturity: An integrative model for food supply chains in global networks. Business Process Management Journal. Advance online publication. https://doi.org/10.1108/BPMJ-01-2024-0031