Certified in Logistics, Transportation and Distribution (CLTD) 2026 – 400 Free Practice Questions to Pass the Exam

The top level of the Planning and Scheduling Hierarchy is Strategic Planning. This level is crucial because it encompasses the long-term vision and direction of an organization, focusing on overall goals and strategies that align with the company's mission. Strategic planning involves making decisions regarding resources, investments, and initiatives that will guide the entire organization in achieving its objectives over a longer time horizon.

Strategic planning serves as a foundation for the lower levels of planning, including Business Planning and Master Production Scheduling (MPS), which are more focused on specific timeframes and operational details. Business Planning aligns various operational aspects with the overall strategy, while MPS translates the strategic decisions into actionable plans for production. Material Requirements Planning (MRP), also a lower level in the hierarchy, focuses on the materials and inventory necessary to meet the production goals established in the MPS.

In summary, while all levels of the Planning and Scheduling Hierarchy are interrelated, Strategic Planning is the highest level as it sets the overall direction and objectives that guide the more detailed and tactical planning that follows.