Which process helps management develop tactical plans for strategic business direction?

Sales and Operations Planning (S&OP) is the correct choice because it serves as a critical process that aligns the company's operational activities with its strategic goals. By integrating input from various departments—including sales, marketing, production, and finance—S&OP provides a holistic view of the business. This enables management to develop tactical plans that not only address current market demands but also align with the broader strategic objectives of the company.

In the S&OP process, data regarding forecasted demand, production capabilities, inventory levels, and resource allocation is analyzed to create a unified plan. This allows companies to balance supply and demand effectively while considering constraints and opportunities. The end result is a well-coordinated approach to executing the company’s strategic vision through tactical decisions.

In contrast, while demand management focuses on understanding and influencing customer demand, resource planning is primarily concerned with the efficient allocation of resources to meet production schedules. Distribution requirements planning involves determining the quantity and timing of inventory needed at different locations. Although these processes are important, they do not integrate the diverse inputs needed to develop comprehensive tactical plans that support strategic business direction as effectively as S&OP does.