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Production and Material Requirements Planning

In: Global Supply Chain and Operations Management

Author

Listed:
  • Dmitry Ivanov

    (Berlin School of Economics and Law)

  • Alexander Tsipoulanidis

    (Berlin School of Economics and Law)

  • Jörn Schönberger

    (Technical University of Dresden)

Abstract

In this chapter, the sales and operation planning (S&OP) concept is presented. It starts with an introductory case study considering sales and operations planning at a petrochemistry company. In the beginning, different planning horizons and the role of aggregate planning are discussed. Afterward, different options for matching demand and supply at an aggregated level are explained. Next, the rolling planning concept is introduced. Subsequently, the concept of the master production schedule (MPS) is presented. We will learn how to apply linear programming methods to production planning. Finally, the principles of exploiting the bill-of-materials are discussed to show how dependent material requirements can be computed while taking lead time into account. This chapter is accompanied by an E-Supplement providing additional case studies, Excel templates, tasks, and video streams.

Suggested Citation

  • Dmitry Ivanov & Alexander Tsipoulanidis & Jörn Schönberger, 2021. "Production and Material Requirements Planning," Springer Texts in Business and Economics, in: Global Supply Chain and Operations Management, edition 3, chapter 12, pages 359-383, Springer.
    • Handle: RePEc:spr:sptchp:978-3-030-72331-6_12
    DOI: 10.1007/978-3-030-72331-6_12
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    Cited by:

    1. Jackson, Ilya & Ivanov, Dmitry, 2023. "A beautiful shock? Exploring the impact of pandemic shocks on the accuracy of AI forecasting in the beauty care industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).

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