Master Planning

Jens Rohde and Michael Wagner
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Jens Rohde: SAP AG
Michael Wagner: Paul Hartmann AG

Chapter 8 in Supply Chain Management and Advanced Planning, 2008, pp 161-179 from Springer

Abstract: Abstract The main purpose of Master Planning is to synchronize the flow of materials along the entire supply chain. Master Planning supports mid-term decisions on the efficient utilization of production, transport, supply capacities, seasonal stock as well as on the balancing of supply and demand. As a result of this synchronization, production and distribution entities are able to reduce their inventory levels. Without centralized Master Planning, larger buffers are required in order to ensure a continuous flow of material. Coordinated master plans provide the ability to reduce these safety buffers by decreasing the variance of production and distribution quantities.

Keywords: Supply Chain; Planning Horizon; Distribution Center; Penalty Cost; Master Planning (search for similar items in EconPapers)
Date: 2008
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DOI: 10.1007/978-3-540-74512-9_9

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