Supply Planning - Meaning & Definition

Published by MBA Skool Team, Last Updated: May 24, 2015

What is 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.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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