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Master Planning

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mohamedrawashdeh2
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26 views4 pages

Master Planning

Uploaded by

mohamedrawashdeh2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Master planning

Master planning overview

The purpose of master planning is to calculate how you can purchase the correct
materials at the correct time and use the correct resources in the correct place. There are
two types of master plans:

• Static plans: Static master planning uses the current data to generate a
net requirements plan. This plan stays unchanged until the next time you
run master planning. It's an operating plan that you use to base your
decisions on and do your daily tasks.
• Dynamic plans: Dynamic master planning starts with the same net
requirements plan generated by static master planning. However, you
update the dynamic plan every time that the master data changes. You can
update it when you create a new sales order, for example. These continual
updates allow you to monitor the changing order network and item
availability without disturbing the static plan that others are using for their
work processes.

Master planning calculates requirements and results when generating planned orders.
The three main master planning processes include:

• Master planning: The master plan calculates net requirements. It's based
on actual current orders and allows you to control inventory replenishment
on a short-term, day-to-day basis. You can also call it the net requirements
plan.
• Forecast plan: The forecast plan calculates gross requirements. It's based
on future projections and allows you to conduct long-term master planning
of materials and capacity.
• Intercompany master planning: The intercompany master plan
calculates net requirements across legal entities. It connects demand and
supply between organizations not only for short-term, firm demand and
supply, but also for long-term, planned demand and supply.
 The following figure displays the primary modules integrated with master planning:

The outcome of running a master plan is planned purchase, production, or transfer orders.
When you firm planned orders, they become an actual order.

 The output of Master planning it will be panned order then will converted to the actual
order.
Master planning setup

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