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The tactical level of Advanced Planning Systems (APS) is where production, distribution, and inventory are optimized. This level focuses on translating strategic goals into actionable plans that can effectively manage resources over a medium-term horizon, typically spanning months. At this stage, decisions are made regarding the allocation of resources, production schedules, inventory levels, and distribution networks to meet demand while minimizing costs and maximizing service levels.

Tactical planning considers various factors such as sales forecasts, lead times, and capacity constraints to create balanced plans that align with the overall business strategy. It is here that organizations can fine-tune their operations to ensure that resources are used efficiently across all areas of production and distribution. The tactical level also integrates various functions and coordinates between departments, optimizing the supply chain's overall efficiency and effectiveness.

In contrast, the strategic level typically deals with long-term goals and directions for the organization, such as market positioning and overall resource allocation, without delving into the finer details of daily operations. The operational level focuses on day-to-day activities and scheduling, while the planning level refers more broadly to the processes that frame both tactical and operational aspects but does not specifically emphasize optimization in the manner that tactical planning does.