Master planning concepts and setup
Master planning has multiple concepts and parameters to discuss. As we explained previously, this module allows companies to plan suggested orders or planned orders as a result of the inputted demands.
To understand how master planning works, let’s look at the following diagram:
Figure 10.2 – Master planning flow
As shown in Figure 10.2, master plans are affected by various sources of information:
- Item coverage and coverage groups: These are the basis of item planning and control of how we cover our stocks. For example, we can cover all the demand for an item monthly or by each requirement that the item has.
- On-hand inventory: This affects the master plan and specifies if we need to re-stock our items.
- Warehouses and locations: Depending on how we set up coverage, we can control our stock by site, warehouse, or location. This is useful to prevent movements between those entities.
- Forecasts...
