A system and method is disclosed for incremental planning using a list based heuristic. The system includes a database storing supply chain entity data and a server system coupled with the database. The server system receives demand for one or more end items from one or more of the supply chain entities within a supply chain network and collapses the supply chain network into one or more flowpaths for each of the one or more end items. The server system also sorts the one or more flowpaths based on one or more rules or parameters stored in the database and reduces the one or more flowpaths using constraints stored in the database. The server system further generates a supply chain plan by solving the received demand using a list based heuristic stored in the database and communicates the generated supply chain plan to the one or more supply chain entities.