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Decision Phases in a Supply Chain
Successful supply chain management requires many decisions relating to the flow of information, products, and funds. These decisions fall into three categories or phases, depending on the frequency of each decision and the time frame over which a decision phase has an impact.
1. Supply chain strategy or design:

  • I. During this phase, the supply chain is structured and configured.
  • II. It is designed to show how resources will be allocated, and what processes each stage will perform.

2. Supply chain planning:

  • During this phase, the time frame considered is a quarter to a year. It starts with a forecast of demand in the coming year.

3. Supply chain operation:

  • I. The time horizon is weekly or daily, and during this phase companies make decisions regarding individual customer orders.
  • II. At the operational level, supply chain configuration is considered fixed and planning policies are already defined.
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