Supply Planning

Posted in Operations and Supply Chain Terms, Total Reads: 2177
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Definition: Supply Planning

Supply planning involves activities in order to meet the future demand in best possible manner. It’s a forward looking process that tries to meet supply with demand. It’s a component of Supply and Operations Planning (S&OP) process. It also takes cares of financial and business goals of the organization.


Supply planning comes after the demand planning and can be shown as follows:



Supply planning includes:

• Demand Prioritization

• Procurement

• Capacity planning

• Supplier management

• Order scheduling

• Stockyard planning

• Inventory optimization

• Replenishment planning etc.


Hence, different kinds of decisions are made during supply planning.

Supply planning minimizes the variability in production. The effectiveness of such planning involves in the accuracy of data.

 

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