What does cascaded planning imply in a supply chain?

Cascaded planning refers to a sequential approach where planning processes occur in stages, with the output from one node or entity in the supply chain guiding the planning for the next. This means that each subsequent step in the planning process is dependent on information and decisions made in previous steps. This allows for a structured flow of information throughout the supply chain, ensuring that each layer appropriately considers the decisions made before it.

This method can often lead to a lack of collaboration and communication between different nodes in the supply chain, as each node focuses primarily on its immediate inputs rather than engaging with others to create a cohesive strategy. As a result, this can lead to inefficiencies or misalignments if the outputs are not effectively managed or communicated. In contrast, integrated planning approaches or collaborative strategies involve all stakeholders working together to align their planning efforts simultaneously, rather than in a sequential manner.