| # Master planning versus order planning Enterprise Planning offers two basic planning concepts: Master planning Order planning Master planning Roughly comparable to traditional MPS planning Planning data is recorded in terms of time buckets (plan periods) Supply is planned in the form of a supply plan, containing supply quantities by plan period If you use master planning for production planning, only critical materials and critical resource capacity are taken into account Order planning Roughly comparable to traditional MRP planning Planning data is recorded on a second-by-second basis Supply is planned in the form of planned orders If you use order planning for production planning, all necessary materials and all necessary resource capacity are taken into account For each plan item, you can either choose one of these methods for supply planning, or combine them. Item master plan An item master plan contains item-specific planning information by plan period. Master planning requires an item master plan. However, master-plan functionality is not confined to master planning: Some types of master-plan data (demand forecasts, inventory plans) can also be used as input for order planning. An item master plan supports functionality that is not available otherwise. If you plan all supply for an item by order planning, an item master plan is optional. 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. Note You determine whether an item master plan is maintained for an item by means of the Maintain Master Plans check box in the Items - Planning (cprpd1100m000) session. Master-plan functionality is only available for an item if this check box is selected. Combinations For each plan item, you can choose between the following combinations: Supply planned by order planning; no item master plan Supply planned by order planning; item master plan Short-term supply planned by order planning, and long-term supply planned by master planning; item master plan Supply planned by master planning; item master plan The following sections contain a diagram that explains each of the previously mentioned combinations. Supply planned by order planning; no item master plan
A | Item order plan
B | Order horizon
C | Planning horizon
x | Current date
In this situation, basic functionality is available for: Demand forecasting ATP Component CTP Inventory planning Supply is planned in the form of planned orders. Supply planned by order planning; item master plan
D | Item master plan
A | Item order plan
B | Order horizon
C | Planning horizon
x | Current date
In this situation, advanced functionality is available for: Demand forecasting and forecast generation ATP and CTP Inventory planning and inventory-plan generation Supply is planned in the form of planned orders. Supply planned by order planning and master planning; item master plan
D | Item master plan
A | Item order plan
E | Master planning horizon
B | Order horizon
C | Planning horizon
x | Current date
In this situation, advanced functionality is available for: Demand forecasting and forecast generation ATP and CTP Inventory planning and inventory-plan generation 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. Supply planned by master planning; item master plan
D | Item master plan
E | Master planning horizon
C | Planning horizon
x | Current date
In this situation, advanced functionality is available for: Demand forecasting and forecast generation ATP and CTP Inventory planning and inventory-plan generation Supply is planned in the form of a supply plan. Related topics Enterprise Planning, an Overview Master planning, an overview Order planning, an overview To use master plans Horizons and time fences |