<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000028" xml:lang="en">
   <Header>
      <Title>Planning without iterations, an example</Title>
      <Keyword type="header" order="d1e197463">
         <Level1>Planning without iterations</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>This example explains how <Link href="/baanerp/cp/glossary/glossary#000019" role="glossary">item master plans</Link> are simulated when material and/or
		capacity constraints are considered and no iterations are used.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Overview</SectionTitle>
      <Paragraph>A chair is manufactured
      from a metal frame and a leather seat. The frame is manufactured from two metal
      pipes.</Paragraph>
      <List>
         <ListIntro>In the planning, items with the following item codes are
			 used:</ListIntro>
         <ListItem>CHAIR</ListItem>
         <ListItem>FRAME</ListItem>
         <ListItem>METAL PIPE</ListItem>
      </List>
      <Paragraph>The frame and the metal
      pipe are defined as constraints.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Initial situation</SectionTitle>
      <Paragraph>In this example, a
		  single plan period is considered.</Paragraph>
      <List>
         <ListIntro>The following assumptions apply:</ListIntro>
         <ListItem>The <Link href="/baanerp/cp/glossary/glossary#000046" role="glossary">projected inventory</Link> of the
			 previous plan period is zero for each item.</ListItem>
         <ListItem>The <Link href="/baanerp/ti/glossary/glossary#LeadTimeOffs_ti" role="glossary">lead-time offsets</Link> involved are zero.</ListItem>
         <ListItem>The <Link href="/baanerp/cp/glossary/glossary#000011" role="glossary">inventory plan</Link> for each item
			 is zero.</ListItem>
         <ListItem>The <GUIRef href="/baanerp/cp/wlc/cpwlc2101m000#cpwlc200.stpo" role="manual">Starting Point WLC</GUIRef> field in the <GUIRef href="/baanerp/cp/wlc/cpwlc2101m000" role="session">Work Load Control Parameters (cpwlc2101m000)</GUIRef> session has been set to <GUIRef href="/baanerp/cp/domains/wlc.stpo#currmps" role="option">Current Master Plan</GUIRef>.</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <Paragraph>A previous simulation
      resulted in the following master plan data:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="4">
            <TR no="1" isLast="false">
               <TH colspan="2" width="137" rowspan="1">CHAIR</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Demand (forecast)</TD>
               <TD width="21" rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Production plan</TD>
               <TD width="21" rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="4" isLast="true">
               <TD rowspan="1" colspan="1">Projected inventory</TD>
               <TD width="21" rowspan="1" colspan="1">0</TD>
            </TR>
         </TBODY>
      </TABLE>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="4">
            <TR no="1" isLast="false">
               <TH colspan="2" width="135" rowspan="1">FRAME</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Dependent demand</TD>
               <TD width="19" rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Production plan</TD>
               <TD width="19" rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="4" isLast="true">
               <TD rowspan="1" colspan="1">Projected inventory</TD>
               <TD width="19" rowspan="1" colspan="1">0</TD>
            </TR>
         </TBODY>
      </TABLE>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="4">
            <TR no="1" isLast="false">
               <TH colspan="2" rowspan="1">METAL PIPE</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Dependent demand</TD>
               <TD rowspan="1" colspan="1">100</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Production plan</TD>
               <TD rowspan="1" colspan="1">100</TD>
            </TR>
            <TR no="4" isLast="true">
               <TD rowspan="1" colspan="1">Projected inventory</TD>
               <TD rowspan="1" colspan="1">0</TD>
            </TR>
         </TBODY>
      </TABLE>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Simulating the master plan</SectionTitle>
      <Paragraph>Suppose that the actual
      demand for CHAIR turns out to be 60, thus surpassing the demand forecast.
      Moreover, the resource where METAL PIPE is produced is overloaded, so that
      actually only 80 pipes can be produced.</Paragraph>
      <Paragraph>Suppose further that the
      master plan is simulated while considering material and capacity constraints,
      but without using iterations.</Paragraph>
      <Paragraph>The simulation consists
      of a normal planning pass, in order of increasing phase number (this means:
      first the end item, then the component).</Paragraph>
      <Paragraph>The following table shows the results of the simulation run. The
      left column contains the existing master plan values; the right column shows
      the result of the simulation.</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <THEAD noTR="1">
            <TR no="1" isLast="true">
               <TD rowspan="1" colspan="1">CHAIR</TD>
               <TD rowspan="1" colspan="1">Old</TD>
               <TD rowspan="1" colspan="1">New</TD>
            </TR>
         </THEAD>
         <TBODY noTR="4">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">Demand (forecast)</TD>
               <TD rowspan="1" colspan="1">50</TD>
               <TD rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Demand (actual)</TD>
               <TD rowspan="1" colspan="1">0</TD>
               <TD rowspan="1" colspan="1">60</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Production plan</TD>
               <TD rowspan="1" colspan="1">50</TD>
               <TD rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="4" isLast="true">
               <TD rowspan="1" colspan="1">Projected inventory</TD>
               <TD rowspan="1" colspan="1">0</TD>
               <TD rowspan="1" colspan="1">-10</TD>
            </TR>
         </TBODY>
      </TABLE>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <THEAD noTR="1">
            <TR no="1" isLast="true">
               <TD rowspan="1" colspan="1">FRAME</TD>
               <TD rowspan="1" colspan="1">Old</TD>
               <TD rowspan="1" colspan="1">New</TD>
            </TR>
         </THEAD>
         <TBODY noTR="3">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">Dependent demand</TD>
               <TD rowspan="1" colspan="1">50</TD>
               <TD rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Production plan</TD>
               <TD rowspan="1" colspan="1">50</TD>
               <TD rowspan="1" colspan="1">50</TD>
            </TR>
            <TR no="3" isLast="true">
               <TD rowspan="1" colspan="1">Projected inventory</TD>
               <TD rowspan="1" colspan="1">0</TD>
               <TD rowspan="1" colspan="1">0</TD>
            </TR>
         </TBODY>
      </TABLE>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <THEAD noTR="1">
            <TR no="1" isLast="true">
               <TD rowspan="1" colspan="1">METAL PIPE</TD>
               <TD rowspan="1" colspan="1">Old</TD>
               <TD rowspan="1" colspan="1">New</TD>
            </TR>
         </THEAD>
         <TBODY noTR="3">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">Dependent demand</TD>
               <TD rowspan="1" colspan="1">100</TD>
               <TD rowspan="1" colspan="1">100</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Production plan</TD>
               <TD rowspan="1" colspan="1">100</TD>
               <TD rowspan="1" colspan="1">80</TD>
            </TR>
            <TR no="3" isLast="true">
               <TD rowspan="1" colspan="1">Projected inventory</TD>
               <TD rowspan="1" colspan="1">0</TD>
               <TD rowspan="1" colspan="1">-20</TD>
            </TR>
         </TBODY>
      </TABLE>
      <List>
         <ListIntro>Explanation:</ListIntro>
         <ListItem>In the new simulation,
			 the actual demand for CHAIR is used instead of the demand forecast (because the
			 actual demand is higher).</ListItem>
         <ListItem>According to this higher
        demand, the production plan of CHAIR should be increased from 50 to 60.
			 However, FRAME is a constraint in the planning of CHAIR, and because the
			 projected inventory for FRAME is 0, the production plan for CHAIR is not
			 increased.</ListItem>
         <ListItem>Because the production
			 plan of CHAIR remains the same, the dependent demand for FRAME is not raised
			 either.</ListItem>
         <ListItem>METAL PIPE is a
			 constraint in the planning of FRAME. However, because the existing projected
			 inventory for METAL PIPE is zero, the production plan for FRAME is not reduced.</ListItem>
         <ListItem>The limited production
			 capacity for METAL PIPE only plays a role in the production plan for METAL
			 PIPE. At the higher levels (which are planned earlier), the planning algorithm
			 is not aware of the constraint posed on metal pipe production.</ListItem>
      </List>
      <List>
         <ListIntro>The main advantage of not using iterations is that it makes
			 the planning process relatively fast. However, as this example shows,
			 constraint-based planning without iterations clearly has its limits. In some
			 situations it can work well, especially if the following conditions apply:</ListIntro>
         <ListItem>The structure of the <Link href="/baanerp/ti/glossary/glossary#000081" role="glossary">bills of critical materials (BCMs)</Link> involved is fairly simple (not many levels, and usually only one
			 critical component per item).</ListItem>
         <ListItem>The current master plan
        is used as the starting point for the workload-control algorithm.</ListItem>
         <ListItem>The master-plan data is
        updated regularly.</ListItem>
      </List>
      <Paragraph>Especially when the
		  planning situation becomes more complicated (complex BCM structures, a high
		  number of interdependencies between plan items), full optimization of the
		  planning requires the use of iterations.</Paragraph>
      <Paragraph>For an explanation of
		  the use of iterations, see <Link href="/baanerp/cp/onlinemanual/000029" role="manual">Planning with iterations</Link>; for an example,
      see <Link href="/baanerp/cp/onlinemanual/000030" role="manual">Planning with iterations, an example</Link>.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000003" role="manual">Workload control</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000027" role="manual">Workload control, to plan against constraints</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000029" role="manual">Planning with iterations</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000030" role="manual">Planning with iterations, an example</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000004" role="manual">Workload control, to compute planning priorities</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>