What is strategic SC planning?

What is strategic SC planning?

• A. Long-term decisions like network design, location selection, make/buy decisions
• B. Daily scheduling of deliveries
• C. Mid-term production planning
• D. Short-term adjustment of inventory levels.

Answer: (A)

Strategic supply chain planning focuses on long-term decisions that shape the structure and capabilities of the entire network. It involves choices about where to locate facilities, how the network should be designed, and whether to make or buy production. These decisions have lasting implications for capacity, costs, service levels, and risk, guiding investments and future operations over many years. In contrast, daily scheduling of deliveries is an operational activity, mid-term production planning is a tactical task spanning weeks to months, and short-term inventory adjustments respond to immediate demand. Because the strategic level is all about enduring network design and capacity decisions, the option describing long-range choices like network design, location selection, and make/buy decisions best captures what strategic planning entails.

Strategic supply chain planning focuses on long-term decisions that shape the structure and capabilities of the entire network. It involves choices about where to locate facilities, how the network should be designed, and whether to make or buy production. These decisions have lasting implications for capacity, costs, service levels, and risk, guiding investments and future operations over many years. In contrast, daily scheduling of deliveries is an operational activity, mid-term production planning is a tactical task spanning weeks to months, and short-term inventory adjustments respond to immediate demand. Because the strategic level is all about enduring network design and capacity decisions, the option describing long-range choices like network design, location selection, and make/buy decisions best captures what strategic planning entails.