Master planning

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. © 2008 Springer-Verlag Berlin Heidelberg.