Market Oriented Planning 

Purpose

Market oriented planning describes planning that is carried out independent of sales orders and is oriented to market requirement dynamics. Incoming sales orders are supplied by warehouse stock (planning with final assembly) or they trigger the production of the finished product (planning without final assembly).

Process Flow

In Sales and Operations Planning (SOP), the sales quantities are planned weekly or monthly, for example, on product or product group level. An operations plan is created using the sales quantities, possibly taking the target stock level into consideration, for example. Even on this rough level, you can include the affect that the planned quantity has on capacity in planning.

The quantities determined in SOP can be then be transferred as independent requirements to Demand Management. If the rough plan was based on a product group, the planned quantities are divided into the individual materials according to their proportional factor. In Demand Management, the requirements from incoming sales orders are accounted for as individual customer requirements. Depending on the planning strategy, these are then settled against the existing planned independent requirements. The result of Demand Management is the demand program.

You could use long-term planning to create and simulate different versions of this demand program in requirements and capacity planning.

Before you carry out a detailed planning run, you can plan master schedule items separately.

Requirements planning then has to cover requirements by receipts if they cannot be covered by existing stocks. The result of the planning run is planned order, amongst others, that are converted to production orders (for in-house produced materials) or to purchase requisitions (for externally procured materials).

The following pre-planning strategies are available in this scenario (selection):