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

5.1.2b Part Processes and Tasks in Medium-Term Planning

Intended learning outcomes: Disclose medium-term planning & control, also called detailed planning and scheduling. Produce an overview on detailed resource requirements planning, and order proposal.



Continuation from previous subsection (5.1.2)

Figure 5.1.2.2 shows the process and tasks of medium-term planning in MEDILS form. The part processes and tasks in medium-term planning are similar to those in long-term planning. Precision-tuning accomplishes more exact determination of bids and blanket orders as well as the schedules (particularly the production schedule and the purchase schedule, that is, the plan that authorizes the factory to manufacture — or the purchasing department to purchase — certain quantities of specific items within a specific time (cf. [ASCM22]).

Fig. 5.1.2.2        Medium-term planning & control: detailed planning and scheduling.

Detailed resource requirements planning calculates detailed material and components requirements and detailed capacity requirements (persons and infrastructure), divided up along the time axis, usually based on the master production schedule MPS (the disaggregated version of the production plan), divided up along the time axis, and through analytical explosion of detailed product structures and routing sheets. This is net requirements planning; inventory and open orders are taken into consideration. Order proposals for R&D, production, and procurement for covering these requirements, are worked out.

An order proposal, or planned order, sets the goods to be produced or procured, the order quantity, the latest (acceptable) completion date, and — often an implicit given — the earliest (acceptable) start date.

On the basis of the order proposals, blanket order planning can be defined more precisely.




Course section 5.1: Subsections and their intended learning outcomes

  • 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”.

  • 5.1.1 The MRP II Concept and Its Planning Hierarchy

    Intended learning outcomes: Explain the business processes in logistics and operations management of an enterprise, structured according to temporal range. Describe the different degrees of detail in planning. Disclose the aim of data management.

  • 5.1.2 Part Processes and Tasks in Long-Term Planning

    Intended learning outcomes: Present long-term planning, also called master planning. Differentiate between master planning and master scheduling. Produce an overview on bid processing, customer blanket order, sales and operations planning (SOP), (detailed) resource requirements planning, requests for quotations, and blanket order processing.

  • 5.1.2b Part Processes and Tasks in Medium-Term Planning

    Intended learning outcomes: Disclose medium-term planning & control, also called detailed planning and scheduling. Produce an overview on detailed resource requirements planning, and order proposal.