Function: Order planning

The order planning function is part of a closed-loop planning structure, which is a starting point for production, purchasing, and warehousing. This business function plans at an operational level and takes all capacities into account to calculate which goods must be produced, which parts must be purchased at what time, and which goods must be replenished.

This process is often used to perform the planning of components and materials. This type of planning is more detailed than the master planning. The order plan is reviewed, and, if required, a scenario for simulation is maintained. The planning of a specific item can be switched to another site through a specific session of master planning. The resulting order plan is analyzed and, if adjustments are required, corrective actions will be taken towards the original setup, and the planning run will be carried out again until the plan can be committed. A number of items can be grouped for further transactions, and then the planned orders will either be transferred to the shop floor, for production orders, to the purchasing department, for purchasing or to the warehouse, for replenishment.