Comparison between Top-Down and Bottom-Up Planning 

Use

Once management and the sales department have completed planning, the respective versions are then compared. If the results obtained by management differ from those obtained by the sales representatives, planning enters into the next iterative processing stage; either management adjusts its targets or the sales representatives modify their entries, or both.

Procedure

  1. Select the report MNGMT-SALES.
  2. Choose .
  3. Enter the following data:
    4.

    Field

    Data

    From period

    001

    To period

    012

    Planning year

    2001

  4. Choose .

The results after the first iterative processing stage in planning are now displayed in the lower part of the screen. A new plan version would now typically be created for management as well as for the sales representatives, and the result of the first iteration would be copied into this version. Both groups would then edit their planning data with a view to achieving a convergence of the planning results. This process is repeated as often as necessary until the management plan and that drawn up by the sales representatives tally.