Long Term Planning

AVINASH
Introduction
Simulate the future demand in all BOM levels.
Main intention is to check the capacity situation, Material requirement and vendor / supplier
ability to provide the material in proper time.
This is not an actual run, but a simulative run where actual plan is not being affected.
It is possible to transfer the plan from simulative are to operative area if through simulation it is
found that all capacity and requirement can be fulfilled.
Main Objective
Reconciliation of capacities.
Forecast of purchasing element
Simulation of demand program at all BOM level
LTP
LTP is MRP run in simulation version to simulate the production plan for the future.
It is possible to transfer the plan from simulative version to operative version.
Purchasing department can use this information to estimate future purchase orders. This
provides them with an opportunity to negotiate delivery schedules and contracts with vendors.
Vendors also have an advantage from long-term planning results as they are sent a preview of
future estimated purchase orders and delivery schedules.
Existing master data can be used for LTP. But to have a different master data(BOM and Routing)
for LTP is also possible.
If you want to delete the Long Term Planning data, then you need to delete the planning
scenario and you can re-run the whole cycle again with new requirement again in another
inactive version.
LTP can also be used to transfer routing activity quantities to the respective cost centers.
Create the Planning Scenario – MS31
Create Planning Scenario
Long Term Planning – MS02
Capacity Situation – CM38
Purchase Info System – MS70
LTP – Material Analysis