Planning horizon

The planning horizon is the amount of time an organization will look into the future when preparing a strategic plan. Many commercial companies use a five-year planning horizon, however a general Planning horizon is around one year. Other organizations such as the Forestry Commission in the UK have to use a much longer planning horizon to form effective plans.

In manufacturing, a planning horizon is a future time period during which departments that support production will plan production work and determine material requirements.

In Economics, a planning horizon is the length of time an individual plans ahead. It's important in the quest for total value, as opposed to short term pleasure consumption.

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