Which planning level involves long-term decisions such as network design and location selection?

Which planning level involves long-term decisions such as network design and location selection?

• A. Strategic SC planning
• B. Tactical SC planning
• C. Operational SC planning
• D. Corporate planning

Answer: (A)

Long-term planning in the supply chain focuses on shaping the overall structure by deciding where and how the network will be set up. Decisions about network design and facility location create the backbone of the system for many years, involve substantial investment, and influence costs and service levels across the entire network. These characteristics make it strategic planning, because it sets the direction and framework that guide all future supply chain decisions. Tactical planning handles mid-term adjustments, such as balancing capacity and inventory policies within the established network, while operational planning deals with day-to-day scheduling and execution. Corporate planning looks at the broader business strategy of the company as a whole, not the specific design of the supply chain network.

Long-term planning in the supply chain focuses on shaping the overall structure by deciding where and how the network will be set up. Decisions about network design and facility location create the backbone of the system for many years, involve substantial investment, and influence costs and service levels across the entire network. These characteristics make it strategic planning, because it sets the direction and framework that guide all future supply chain decisions.

Tactical planning handles mid-term adjustments, such as balancing capacity and inventory policies within the established network, while operational planning deals with day-to-day scheduling and execution. Corporate planning looks at the broader business strategy of the company as a whole, not the specific design of the supply chain network.