The OSP methodology is designed to generate and propose selling and production plans that optimize profitability and productivity using criteria set by the user.  Maximum profitability plans, for example,  can be determined by finding which products to produce and sell for maximum variable margin or profit.  Maximum productivity plans can also be determined  by finding  which machine to run each product  on at each stage in the manufacturing chain in order to maximize the production throughput.

Examples of  optimum criteria that can be selected by the user are:  maximum variable margin, minimum variable cost, maximum volume,  minimum direct labor, etc., where these functions to be maximized or minimized are defined by the user as production-related variables.

Strategic demand constraints are used in determining optimum plans and based on customer orders and sales forecasts.  These constraints are user selected.

The optimum plans generated give solutions between the selected minima and maxima with the optimum criteria and manufacturing constraints, and can be used by sales and marketing to direct the sales efforts to ensure that what is sold in each planning period can also be produced. 

The manufacturing constraints on available resources are the machines, materials, labor and other resources defined by the user.  The optimum plans generated are used by manufacturing to set production and inventory levels for the master production schedule to ensure that what is produced can also be sold in each planning period. 

These optimum plans propose realizable production and sales levels and show the impact or effects on productivity and profitability of accepting and producing at these levels.

The optimization techniques used are based on the Simplex Method from Linear Programming. These techniques are implemented in subroutines that are used in generating the optimum demand and supply plans.