In the Plan-Source-Make-Deliver framework, what does the Plan function encompass?

• A. Sets overall strategy and resource plan.
• B. Acquires raw materials.
• C. Converts inputs into finished products.
• D. Handles order fulfillment and logistics.

Answer: (A)

Plan focuses on setting the overall direction for the supply chain by defining what will be produced, in what quantities, and when, and outlining the resources and constraints needed to do it. It includes forecasting demand, planning capacity, establishing inventory targets, and creating the master plan and budget that guide the entire network. This planning activity coordinates decisions across the functions and sets the framework for Source, Make, and Deliver to operate within. Acquiring raw materials belongs to Source, converting inputs into finished products belongs to Make, and handling order fulfillment and logistics belongs to Deliver, so those activities are outside the Plan scope.