| # Function: Master planning This function is used to perform end item planning. The master plan shows more than volumes and dates. A detailed plan is available in which the origin of orders can be detected and analyzed. The master plan is an overall production plan, which contains a company's logistic targets with respect to sales, production, and inventory. In this function, you can create a master plan, based on a demand plan generated by demand management or supply chain planning. Master planning looks at the critical capacities while taking a fixed lead-time offset into account. You can use the resulting master plan as input for order planning. Process: Master planning (code: MPL01a) The order and master plan will be generated, but first the supply plan will be reviewed. Before the master plan is generated, you might first be required to update, roll, or change the scenario. If sales channels are used to define the demand forecast, you must first aggregate the channel plans to item plans. If a multisite scenario is in place, you can first disaggregate the demand to the local sites. If a simulation of the master plan is created, this demand will be analyzed. If adjustments are required, you can take corrective actions towards the original setup, and the master-planning run will be carried out again until the master planning is suitable. After finalization, the production plan will be transferred to production orders, or the master plan will be moved to firm planned orders. Assumptions: This process is applicable to all production and distribution environments, although the project functionality of LN will handle designed project solutions. Analysis of critical materials is only performed in master planning and not in order planning because this activity usually occurs on end-product level. Master planning is most often used for long-term planning. IT support: LN Planning |