SupplyPlanning

Supply planning is a planning discipline in supply chain management that translates demand forecasts and current inventory into an executable production and distribution plan. The aim is to meet customer demand while managing cost, lead times, and service levels.

It sits between aggregate planning and execution, coordinating capacity, procurement, and logistics. It interfaces with demand planning to absorb forecasted demand, with production planning to schedule capacity, and with sourcing and logistics to align orders and shipments.

Core activities include deciding what to manufacture or buy, in what quantities, and when, given constraints such as capacity, material availability, and supplier lead times. It also covers inventory optimization, safety stock, and scenario analysis to evaluate options under different demand and supply conditions.

Inputs include demand forecasts, master production schedule, current inventory, bills of materials, routings, supplier data, and service level targets. Outputs are production and procurement plans, replenishment recommendations, and performance reports on service levels and utilization.

Technology and methods span ERP and advanced planning systems, optimization, and what-if analysis. Approaches may use finite-capacity or constraint-based planning within an S&OP framework to balance demand, supply, and costs.

Key metrics include service level, forecast accuracy, inventory turnover, fill rate, and capacity utilization. Challenges involve demand volatility, supply disruptions, data quality, and cross-functional coordination across teams and suppliers.