![]() Financial planning is based on the profit plan. The Profit Plan, which is the highest degree of supply chain planning and also has the longest duration, is evaluated quarterly and is often extended over a period of 12 months. Supply Chain Planning Horizon/Review Frequency Plan), and factory planning or line scheduling. In this blog, I’ll briefly go over the components of the supply chain planning building block that make up a typical organization’s profit plan, sales inventory & operations planning (SIOP), master plan, material planning (Mat. Organisations typically use a range of names to describe the different planning levels. The diagram below illustrates how the five levels of supply chain planning work together, along with how frequently they are reviewed and how sophisticated their organisational structure is, from Low to High. Each time-phase also results in a shift in complexity. To support the long-term plan, it is crucial to have a plan with several time frames (time-phased plans) that work together. All of the functional plans must also work together to ensure that they mesh and support the overarching strategy and objectives of the organisation. The 5 levels of Supply Chain Planning Horizon acknowledge that planning is a continuous process that occurs at various levels and times depending on resource availability. Most businesses formally revise their profit plans at least once a year. ![]() ![]() There are multiple levels of supply chain planning within an organisation, as well as numerous functional divisions.
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