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SALES-AND-OPERATIONS-PLANNING5 MIN READ

Separate Constraints From Preferences

Distinguish hard constraints, policy constraints, and preferences during supply review.

The move: classify the limit before choosing the fix. Hard constraint A hard constraint is a physical, contractual, regulatory, or capability limit inside the horizon. Treat it as real until evidence changes. The decision is allocation, demand shaping, substitution, or investment. Policy constraint A policy constraint is a rule. It may be wise, but it is still a choice. If a batch rule, freeze window, approval threshold, or customer priority rule creates the gap, escalate to the accountable owner with consequences. Preference A preference is a default habit. It can be valid, but it needs evidence. "We do not like…

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