Differentiated planning is one of the means for today's companies to accommodate the increasing needs for product variety, delivery responsiveness, and cost-efficiency. Even though, product segmentation is the foundation for such planning, planning nervousness has not yet been addressed from this perspective. This paper seeks to establish a relation between planning nervousness and segmentation by analyzing the current body of literature with the objective of identifying overlaps between the two areas. The literature characteristics are assessed and directions for future research are provided.
Previous research presents a theoretical relation between planning nervousness and product segmentation and indicates that the concept should be subject to further research. This paper seeks to empirically confirm this relation, by developing hypotheses and testing these on a specific case. Three hypotheses related to historical planning data, planning frequency, and demand variability are developed and tested using data from three-echelons in a case company. A key finding is a confirmation of the relationship, providing operational tools that can assist organizations in battling planning nervousness.
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