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Supply planning

What is supply planning?

Supply planning is the process of aligning supply with demand to ensure that sufficient quantities of goods or materials are available to meet customer needs while minimizing costs and optimizing inventory levels. It involves forecasting demand, determining production or procurement requirements, scheduling production activities, and managing inventory levels to maintain a balance between supply and demand.

Supply planning vs. supply chain planning

While supply planning focuses specifically on managing the flow of materials and goods within the supply chain, supply chain planning encompasses a broader range of activities. 

Supply chain planning includes strategic and tactical decision-making processes such as demand planning, production planning, distribution planning, and inventory management. On the other hand, supply planning specifically addresses the allocation of resources and production scheduling to meet demand in a timely and cost-effective manner.