Integrating Finance into S&OP: Towards IBP Scenario Planning and Optimization Enhancing Business Planning for an Assembly-to-Order Truck Global Manufacturing Organization

Abstract

Modern manufacturing supply chains face increasing dynamic and detail complexity, requiring planning processes that align operational feasibility with financial outcomes. However, traditional Sales and Operations Planning (S&OP) often operate as a volume-driven process, leaving financial integration as a sequential, disconnected step. This thesis investigates how the alignment between operational volume planning and financial planning can be strengthened towards Integrated Business Planning (IBP). Applying a combined theoretical lens of Contingency Theory and Organizational Information Processing Theory (OIPT), this single case study utilizes a mixed-methods approach encompassing semi-structured interviews, cross-functional workshops, and quantitative data modeling. The current-state analysis reveals three primary planning gaps: time misalignment, limited financial visibility, and a siloed planning execution. To address these limitations, this study proposes a dual-mechanism response. First, an IBP process redesign is introduced to establish cross-functional governance and an integrated consensus routine. Second, an analytical proof-of-concept tool is developed to operationalize a "volume-to-economic value" translation, utilizing multi-period linear programming optimization and proactive scenario planning. The findings suggest that combining structural process changes with advanced analytical decision-support mechanisms can increase organizational information processing capacity. Ultimately, this proposed integrated approach aims to enable organizations to evaluate operational and financial trade-offs continuously, fostering proactive, profit-optimized decision-making in complex manufacturing environments.