Integrating portfolio decisions into sales and operations planning: a literature review and novel framework for holistic decision-making

Despite the substantial body of knowledge in sales and operations planning (S&OP) research, a gap of studies addressing the integration of portfolio decisions is identified. To address this gap, this study aims to develop a novel framework that integrates product portfolio planning into the S&OP process to improve performance. To achieve this goal, a systematic literature review was performed to identify product portfolio optimization methods, key objectives, inputs and outputs, and their potential integration into the S&OP process. Based on the synthesis of 50 selected articles, we have identified that most of the product portfolio optimization methods overlap strategic, tactical, and operational inputs and outputs and therefore can be integrated into the S&OP process to achieve refined and result-oriented S&OP designs. The proposed portfolio-driven S&OP framework assists practitioners in improving their organizational performance by linking strategic portfolio decisions to tactical and operational inputs from the S&OP process. In addition, this study sheds light on a new line of S&OP research that focuses on methods to support strategic portfolio management decisions.