Improving Planning

Although the examples in the preceding sections focused on objectives for operational performance, this is only one of the three levels of objectives shown in Figure 12.4. The operational level usually gets the most attention when it comes to performance because the payoffs from improvement are immediate, but there is a danger of focusing so heavily on operations that you miss even better opportunities in the design and planning of your chain. Yes, you can increase your customer service level by holding inventory closer to your customers, but that requires higher inventory levels, so it just trades one operational objective off against another. On the other hand, if you can increase your ability to forecast your customers' ...

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