This article outlines the hierarchical framework of logistics planning, composed of strategic, tactical, and operational planning. Each of these planning horizons has distinct characteristics and requires different levels of resources and managerial time. Strategic planning involves making decisions that have the most significant impact on the organization’s long-term success; tactical planning involves making decisions that have a medium-term impact. Operational planning involves making decisions that have a short-term impact.
By implementing this hierarchical framework, organizations can ensure that their decisions are aligned with their long-term goals and objectives.
Introduction
Strategic Planning
Tactical Planning
Operational Planning
Conclusion
Logistics planning is a critical component of any business’s success. It involves making decisions about the resources, time, and cost associated with moving goods and services from one point to another. A hierarchical framework is necessary to effectively manage the range of activities and decisions related to logistics planning.
This framework is composed of strategic planning, tactical planning, and operational planning. Each of these planning horizons has distinct characteristics and requires different levels of resources and managerial time.
Strategic Planning
Strategic planning is the most long-term of the three planning horizons. It involves making decisions that have the most significant impact on the organization’s long-term success. These decisions often require significant resources and managerial time.
Examples of strategic planning decisions include the location and size of a factory, the selection of suppliers and vendors, and the development of a global supply chain.
Balancing Capacity Responsiveness Flexibility And Cost İn Supply Chain
Collaborative Planning, Forecasting, And Replenishment Benefits İn Supply Chain Management
Tactical Planning
Tactical planning is the central planning horizon. It involves making decisions that have a medium-term impact on the organization’s success. These decisions require more resources and managerial time than operational planning decisions but less than strategic planning decisions. Examples of tactical planning decisions include inventory management, transportation schedules, and production scheduling.
Operational Planning
Operational planning is the shortest planning horizon. It involves making decisions that have a short-term impact on the organization’s success. These decisions require the least amount of resources and managerial time. Examples of operational planning decisions include warehouse layout, production line scheduling, and order fulfillment.
Logistics planning is a critical component of any business’s success. A hierarchical framework is necessary to effectively manage the range of activities and decisions associated with logistics planning. This framework is composed of strategic planning, tactical planning, and operational planning.
Each of these planning horizons has distinct characteristics and requires different levels of resources and managerial time. By implementing a hierarchical framework for logistics planning, organizations can ensure that their decisions are aligned with their long-term goals and objectives.
A Hierarchical Framework for Logistics Planning is the key to efficient and successful operations.
