Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

5.2 Master Planning — Long-Term Planning

Intended learning outcomes: Describe demand management, sales and operations planning as well as resource requirements planning. Explain master scheduling and rough-cut capacity planning. Disclose supplier scheduling: blanket order processing, release, and coordination.


This section highlights in depth the long-term business process in planning & control, that is long-term planning, or master planning. One the one hand, long-term planning is important due to its temporal range. On the other hand, presenting the long-term business process here makes it possible to explain how the planning & control tasks in Figure 5.1.4.2 act together without having to resort to an overly complex method of presenting the material. This section contains detailed information on the different tasks presented in Figure 5.1.2.1.


Course section 5.2: Subsections and their intended learning outcomes

  • 5.2 Master Planning — Long-Term Planning

    Intended learning outcomes: Describe demand management, sales and operations planning as well as resource requirements planning. Explain master scheduling and rough-cut capacity planning. Disclose supplier scheduling: blanket order processing, release, and coordination.

  • 5.2.1 Demand Management: Bid and Customer Blanket Order Processing and Demand Forecasting

    Intended learning outcomes:: Describe demand management, customer bid, order success probability and customer blanket order. Present some aspects of demand forecasting.

  • 5.2.2 Sales and Operations Planning and Resource Requirements Planning

    Intended learning outcomes: Present the concepts of sales plan, production plan, procurement plan, inventory policy, inventory plan, and aggregate plan. Explain sales and operations planning as an iterative master planning process. Disclose an example of iterative planning by comparing three production plans, with zero, two or four changes in production rhythm per year.

  • 5.2.3 Master Scheduling and Rough-Cut Capacity Planning

    Intended learning outcomes: Produce an overview on master scheduling and planning time fence. Present in detail the master production schedule (MPS) as a disaggregated version of the production plan. Explain the tasks for establishing a master production schedule. Describe the process of rough-cut capacity planning (RCCP).



Course 5: Sections and their intended learning outcomes

  • Course 5 – The MRP II / ERP Concept: Business Processes and Methods

    Intended learning outcomes: Disclose business processes and tasks in planning & control. Explain in detail master planning or long-term planning, Describe detailed planning and execution.

  • 5.1 Business Processes and Tasks in Planning & Control

    Intended learning outcomes: Describe the MRP II concept and its planning hierarchy. Explain the part processes and tasks in long-term, medium-term planning as well as in short-term planning & control. Present the reference model of processes and tasks in planning & control. Produce an overview beyond MRP II: DRP II, integrated resource management, and the “theory of constraints”.

  • 5.2 Master Planning — Long-Term Planning

    Intended learning outcomes: Describe demand management, sales and operations planning as well as resource requirements planning. Explain master scheduling and rough-cut capacity planning. Disclose supplier scheduling: blanket order processing, release, and coordination.

  • 5.3 Introduction to Detailed Planning and Execution

    Intended learning outcomes: Disclose basic principles of materials management, scheduling and capacity management concepts. Produce an overview of materials management, scheduling and capacity management techniques. Differentiate between available-to-promise and capable-to-promise.

  • 5.4 Logistics Business Methods in R&D

    Intended learning outcomes: Produce an overview on integrated order processing and simultaneous engineering. Describe release control and engineering change control. Differentiate between various views of the business object according to task.

  • 5.5 Summary

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  • 5.6 Keywords

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  • 5.7 Scenarios and Exercises

    Intended learning outcomes: Disclose master scheduling for product variants. Calculate the quantity available-to-promise (ATP). Examine an example of the theory of constraints. Elaborate the master planning case.

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