Different levels of planning in supply chain operations management include:
Multiple Choice
Long-term and short-term planning.
Strategic, tactical, and operational planning.
General and detailed planning.
Logistical, operational, and procurement planning.
The Correct Answer and Explanation is :
The correct answer is:
Strategic, tactical, and operational planning.
Explanation:
In supply chain operations management, planning is crucial for ensuring the smooth flow of goods, services, and information across the supply chain. This planning occurs at different levels, with each level having distinct objectives and time horizons. The three primary levels of planning are strategic, tactical, and operational.
- Strategic Planning:
- This is the highest level of planning in supply chain management, typically focusing on long-term goals (3-5 years or more).
- It involves decisions regarding the overall design and structure of the supply chain, including choosing suppliers, selecting distribution networks, and deciding on the technologies and processes that will support the supply chain.
- Strategic planning also addresses issues such as mergers, acquisitions, or partnerships that can affect the entire supply chain.
- Tactical Planning:
- Tactical planning occurs in the medium-term (1-3 years) and translates strategic goals into actionable plans.
- This level involves decisions about resource allocation, production scheduling, inventory management, and procurement.
- Tactical planners may work on optimizing the supply chain network by balancing demand and supply, adjusting inventories, and coordinating transportation and warehousing to align with strategic objectives.
- Operational Planning:
- Operational planning is focused on the short-term (daily, weekly, or monthly).
- It deals with day-to-day activities, such as scheduling shipments, managing inventory levels, and ensuring that the production process runs smoothly.
- Operational planners are concerned with executing the tactical plans, handling unexpected disruptions, and making quick adjustments to keep the supply chain running efficiently.
Each of these levels plays a vital role in the success of the supply chain. Strategic planning sets the overall direction, tactical planning ensures resources and processes align with that direction, and operational planning ensures that daily operations are executed efficiently.