What is the typical time horizon for the operation phase in supply chain management?

The operation phase in supply chain management is characterized by its focus on the day-to-day activities necessary to run the supply chain efficiently. Typically, this involves managing inventory levels, order processing, production scheduling, and logistics. The time horizon for these activities is usually set on a weekly or daily basis. This allows supply chain managers to respond quickly to fluctuations in demand, manage resources effectively, and ensure that customer orders are fulfilled promptly.

In a dynamic environment, having a shorter time horizon enables companies to adapt to changes in market conditions, supplier availability, and customer preferences. A weekly or daily approach also facilitates more accurate forecasting and resource allocation, which are critical for maintaining optimal operations and minimizing costs. Thus, the focus on short-term planning and execution distinguishes the operational phase from other phases of supply chain management, such as strategic planning, which may look at longer time frames such as quarterly or yearly.