Supply planning

To serve market demand, adequate supply chain resources or capabilities are required. The main goal of supply planning is straightforward, that is to ensure customer requirements are satisfied at a minimum resource cost with higher efficiency.

Supply planning, oftentimes called resource planning, is concerned with supply chain capability and efficiency in fulfilling demand.

In the supply chain synchronization framework presented in figure 5, you will see that integration is happening between internal and external supply chains. These supply chains build capabilities in creating value to end customers.

Supply chain capabilities are characterized by raw materials availability, manufacturing load capacity, distribution facilities, logistics infrastructure, information systems, and product knowledge.

The figure 9 depicts the resource planning process in the manufacturing environment

Figure 9. Resource planning process. Source: Adopted from Wallace and Stahl, Sales and Operations Planning, The How-To-Book, 3rd edition.

<< Previous topic

join the supply chain community

Get the supply chain insights straight in your inbox

You agree to our privacy policy when you sign up