Developing products
Determining pricing
Promoting products to customers
Taking customers’ orders
Helping create a sales forecast
Marketing and Sales (M/S)
Production and Materials Management (P/MM)
Accounting and Finance (A/F)
Human Resources (HR)
Supply Chain Management
Functions within Supply Chain Management
Making the lemonade
(manufacturing/production)
Buying raw materials (purchasing)
Production planning requires sales forecasts
from M/S functional area
Sales forecasts: Analyses that attempt to
predict the future sales of a product
S
Production plans used to develop
requirements for raw materials and
packaging
Raw materials: Bottle, water, fresh
lemons, raw sugar
Packaging: Cups
SCM and M/S must choose a recipe for each
lemonade product sold
Accounting and Finance
Functions within Accounting and Finance
Recording raw data about transactions
(including sales), raw material purchases,
payroll, and receipt of cash from
customers
Data from Accounting and Finance used by
Marketing and Sales and Supply Chain
Management
Sales records are important component of
sales forecast
Sales forecast is used in making staffing
decisions and in production planning