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Master Planning

In: Supply Chain Management and Advanced Planning

Author

Listed:
  • Jens Rohde

    (SAP AG)

  • Michael Wagner

    (Paul Hartmann AG)

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.

Suggested Citation

  • Jens Rohde & Michael Wagner, 2008. "Master Planning," Springer Books, in: Hartmut Stadtler & Christoph Kilger (ed.), Supply Chain Management and Advanced Planning, edition 4, chapter 8, pages 161-179, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-74512-9_9
    DOI: 10.1007/978-3-540-74512-9_9
    as

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