What is tactical SC planning?

• A. Mid-term decisions such as production planning, inventory levels, workforce planning
• B. Very long-term strategic network design
• C. Daily routes optimization in the field
• D. Determining supplier contracts only.

Answer: (A)

Tactical planning in the supply chain focuses on mid-term decisions that translate broader goals into actions for the near future. It’s about organizing resources to meet expected demand over the next few weeks to months, rather than day-to-day operations or long-range strategy. The key elements are production planning (how much to produce in each period), inventory levels (how much to keep on hand to hit service levels while controlling costs), and workforce planning (how many workers or shifts are needed to meet projected output). This level of planning sets the pace for operations by aligning capacity, materials, and labor with anticipated demand, often using tools like a master production schedule or rough-cut capacity planning.

Why this fits the concept: it sits between strategic decisions (longer horizon, network design, overall policy) and operational decisions (daily scheduling and execution). It’s broad enough to shape several functional areas at once (production, inventory, labor) and has a horizon that makes it possible to adjust plans before execution, without getting lost in day-to-day routing or contract-level negotiations.

Daily routes optimization is more about execution and scheduling in real time, which is operational planning. Long-term network design is strategic planning, shaping the overall structure of the supply chain for years. Determining supplier contracts alone is a procurement activity that can be strategic or tactical, but on its own doesn’t capture the broader mid-term planning of production, inventory, and workforce that tactical planning entails.