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<ManualTopic ID="/baanerp/cp/onlinemanual/000303" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Master planning versus order planning</Title>
		<Keyword><Level1>Master planning vs. order planning</Level1>
		</Keyword>
		<Keyword><Level1>Master planning</Level1>
		</Keyword>
		<Keyword><Level1>Order planning</Level1>
		</Keyword>
	</Header>
	<GeneralSection><List><ListIntro>Enterprise Planning offers two basic planning concepts:</ListIntro>
			<ListItem><Link href="/baanerp/cp/glossary/glossary#000059" role="glossary">Master planning</Link>
			</ListItem>
			<ListItem><Link href="/baanerp/cp/glossary/glossary#000060" role="glossary">Order planning</Link>
			</ListItem>
		</List>
		<GeneralSection><SectionTitle>Master planning</SectionTitle>
			<List><ListItem>Roughly comparable to traditional MPS planning</ListItem>
				<ListItem>Planning data is recorded in terms of time buckets (plan periods)</ListItem>
				<ListItem>Supply is planned in the form of a supply plan, containing supply quantities by plan period</ListItem>
				<ListItem>If you use master planning for production planning, only critical materials and critical resource capacity are taken into account</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Order planning</SectionTitle>
			<List><ListItem>Roughly comparable to traditional MRP planning</ListItem>
				<ListItem>Planning data is recorded on a second-by-second basis</ListItem>
				<ListItem>Supply is planned in the form of planned orders</ListItem>
				<ListItem>If you use order planning for production planning, all necessary materials and all necessary resource capacity are taken into account</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><Paragraph>For each <Link href="/baanerp/ti/glossary/glossary#PlanItems.ti" role="glossary">plan item</Link>, you can either choose one of these methods for supply planning, or combine them.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Item master plan</SectionTitle>
			<Paragraph>An <Link href="/baanerp/cp/glossary/glossary#000019" role="glossary">item master plan</Link> contains item-specific planning information by plan period.</Paragraph>
			<Paragraph>Master planning requires an item master plan. However, master-plan functionality is not confined to master planning:</Paragraph>
			<List><ListItem>Some types of master-plan data (demand forecasts, inventory plans) can also be used as input for order planning.</ListItem>
				<ListItem>An item master plan supports functionality that is not available otherwise.</ListItem>
			</List>
			<Paragraph>If you plan all supply for an item by order planning, an item master plan is optional.</Paragraph>
			<Paragraph>On the one hand, an item master plan gives access to functionality that is not available otherwise. On the other hand, item master plans have an adverse effect on system performance. Therefore, you should only maintain an item master plan if you need specific master-plan functionality.</Paragraph>
			<Note><SectionTitle>Note</SectionTitle>
				<Paragraph>You determine whether an item master plan is maintained for an item by means of the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.osys" role="field">Maintain Master Plans</GUIRef> check box in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session. Master-plan functionality is only available for an item if this check box is selected.</Paragraph>
			</Note>
		</GeneralSection>
		<GeneralSection><SectionTitle>Combinations</SectionTitle>
			<Paragraph>For each plan item, you can choose between the following combinations:</Paragraph>
			<List><ListItem>Supply planned by order planning; no item master plan</ListItem>
				<ListItem>Supply planned by order planning; item master plan</ListItem>
				<ListItem>Short-term supply planned by order planning, and long-term supply planned by master planning; item master plan</ListItem>
				<ListItem>Supply planned by master planning; item master plan</ListItem>
			</List>
			<Paragraph>The following sections contain a diagram that explains each of the previously mentioned combinations.</Paragraph>
		</GeneralSection>
		<GeneralSection><GeneralSection ID="A"><SectionTitle>Supply planned by order planning; no item master plan</SectionTitle>
				<Figure><HTML:IMG SRC="../images/nt_graph_000303a.gif" height="180" width="324" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/><FigLegend><LegendEntry><Symbol>A</Symbol>
							<Desc>Item order plan</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>B</Symbol>
							<Desc>Order horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>C</Symbol>
							<Desc>Planning horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>x</Symbol>
							<Desc>Current date</Desc>
						</LegendEntry>
					</FigLegend>
				</Figure>
				<Paragraph>In this situation, basic functionality is available for:</Paragraph>
				<List><ListItem>Demand forecasting</ListItem>
					<ListItem><Link href="/baanerp/cp/glossary/glossary#000030" role="glossary" Update="No">ATP</Link>
					</ListItem>
					<ListItem>Component CTP</ListItem>
					<ListItem>Inventory planning</ListItem>
				</List>
				<Paragraph>Supply is planned in the form of planned orders.</Paragraph>
			</GeneralSection>
			<GeneralSection ID="B"><SectionTitle>Supply planned by order planning; item master plan</SectionTitle>
				<Figure><HTML:IMG SRC="../images/nt_graph_000303b.gif" height="180" width="324" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/><FigLegend><LegendEntry><Symbol>D</Symbol>
							<Desc>Item master plan</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>A</Symbol>
							<Desc>Item order plan</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>B</Symbol>
							<Desc>Order horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>C</Symbol>
							<Desc>Planning horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>x</Symbol>
							<Desc>Current date</Desc>
						</LegendEntry>
					</FigLegend>
				</Figure>
				<Paragraph>In this situation, advanced functionality is available for:</Paragraph>
				<List><ListItem>Demand forecasting and forecast generation</ListItem>
					<ListItem>ATP and CTP</ListItem>
					<ListItem>Inventory planning and inventory-plan generation</ListItem>
				</List>
				<Paragraph>Supply is planned in the form of planned orders.</Paragraph>
			</GeneralSection>
			<GeneralSection ID="C"><SectionTitle>Supply planned by order planning and master planning; item master plan</SectionTitle>
				<Figure><HTML:IMG SRC="../images/nt_graph_000303c.gif" height="180" width="324" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/><FigLegend><LegendEntry><Symbol>D</Symbol>
							<Desc>Item master plan</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>A</Symbol>
							<Desc>Item order plan</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>E</Symbol>
							<Desc>Master planning horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>B</Symbol>
							<Desc>Order horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>C</Symbol>
							<Desc>Planning horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>x</Symbol>
							<Desc>Current date</Desc>
						</LegendEntry>
					</FigLegend>
				</Figure>
				<Paragraph>In this situation, advanced functionality is available for:</Paragraph>
				<List><ListItem>Demand forecasting and forecast generation</ListItem>
					<ListItem>ATP and CTP</ListItem>
					<ListItem>Inventory planning and inventory-plan generation</ListItem>
				</List>
				<Paragraph>Within the order horizon, supply is planned in the form of planned orders. Within the master-planning horizon, supply is planned in the form of a supply plan.</Paragraph>
			</GeneralSection>
			<GeneralSection ID="D"><SectionTitle>Supply planned by master planning; item master plan</SectionTitle>
				<Figure><HTML:IMG SRC="../images/nt_graph_000303d.gif" height="180" width="324" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/><FigLegend><LegendEntry><Symbol>D</Symbol>
							<Desc>Item master plan</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>E</Symbol>
							<Desc>Master planning horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>C</Symbol>
							<Desc>Planning horizon</Desc>
						</LegendEntry>
						<LegendEntry><Symbol>x</Symbol>
							<Desc>Current date</Desc>
						</LegendEntry>
					</FigLegend>
				</Figure>
				<Paragraph>In this situation, advanced functionality is available for:</Paragraph>
				<List><ListItem>Demand forecasting and forecast generation</ListItem>
					<ListItem>ATP and CTP</ListItem>
					<ListItem>Inventory planning and inventory-plan generation</ListItem>
				</List>
				<Paragraph>Supply is planned in the form of a supply plan.</Paragraph>
			</GeneralSection>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000300" role="manual">Enterprise Planning, an Overview</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000020" role="manual">Master planning, an overview</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000021" role="manual">Order planning, an overview</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000022" role="manual">To use master plans</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000023" role="manual">Horizons and time fences</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
