Planning of material requirements
Material requirement planning is used to determine the amount of material needed in conjunction with the type of requirement, quantity and timing.
Brief description
In order to ensure the continuity of production in the enterprise, it is necessary to create effective demand planning. The length of the planning period depends on the planning horizon, which is determined by the information provided. The longer the planning horizon, the lower the overall quality of information. This means that the longer the planning horizon, the greater the uncertainty of planning decisions.
In principle, demand planning can be presented more easily and concretely: the smaller the number of items in the sales and production program, the fewer components/parts the products show, and the larger the production batches (fewer rest phases).
- Deterministic planning of material requirements
In the case of deterministic or order-oriented planning, we speak of calculating the necessary demand based on the submitted primary demand and the submitted manufacturing structure. The starting point is customer orders or stock orders (order-oriented), which establish the primary demand. If, in addition to the primary demand, the structures of the final products are known (e.g., in the form of lists) then the gross secondary demand can be calculated with confidence (deterministically).