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

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.


This section gives a brief overview of logistics business methods and techniques used for detailed planning and scheduling, as well as for execution and control of operations in the areas of distribution, production, and procurement. We will show the basic considerations that lead to various methods of solving the tasks presented in the reference model in Figure 5.1.4.2. The methods themselves will be the subject of more detailed, later chapters.


Course section 5.3: Subsections and their intended learning outcomes

  • 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.

  • 5.3.1 Basic Principles of Materials Management Concepts

    Intended learning outcomes: Present the objectives of materials management. Differentiate between deterministic materials management and stochastic materials management. Differentiate between independent demand and dependent demand. Produce an overview on quasi-deterministic materials management, fill rate, cumulative fill rate, stockout, backorder.

  • 5.3.2 Overview of Materials Management Techniques

    Intended learning outcomes: Disclose the basic classification of detailed planning techniques in materials management. Explain the additional classification for unique demand or demand for high-cost items with a discontinuous demand pattern. Produce an overview on techniques such as Kanban, order point technique, CPFP (cumulative production figures principle), and MRP (material requirements planning).

  • 5.3.3 Basic Principles of Scheduling and Capacity Management Concepts

    Intended learning outcomes: Present the objectives of the tasks as well as the overall objective of scheduling and capacity management. Describe the vicious circle caused when capacity bottlenecks prolong the planned production lead-time. Disclose to which extent capacity can be stored.

  • 5.3.4 Overview of Scheduling and Capacity Management Techniques

    Intended learning outcomes: Differentiate between infinite loading and finite loading. Explain the classification of techniques for capacity management in dependency upon flexibility of capacity and flexibility of order due date. Produce an overview on order-oriented infinite loading, order-wise infinite and finite loading, operations-oriented and order-oriented finite loading, constraint-oriented finite loading, load-oriented order release (Loor), capacity-oriented materials management (Corma).

  • 5.3.5 Available-to-Promise (ATP) and Capable-to-Promise (CTP)

    Intended learning outcomes: Explain available-to-promise (ATP) and the determination of ATP quantities. Produce an overview on the techniques of multilevel available-to-promise (MLATP) and capable-to-promise (CTP).



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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