Simulating a Material Plan

The purpose of simulating a Material Plan is to explode a Master Demand Schedule (MDS) to determine the need for opening items and capacity, to create a basis for costing, and so on.

Based on the budget for the coming year you can, for example:

  • Update annual demand for opening items to calculate new reorder points
  • Analyze load
  • Calculate standard prices for the coming year

MDS version

When you simulate a material plan, an MDS is used as the foundation of the simulation. You can use either the valid MDS or another MDS version.

The valid master demand schedules are maintained in 'Manual Forecast/MDS. Open' (FCS350).

An MDS version is defined in 'MDS Version. Open' (MPS300). An MDS version is entered with a version designation in the range A-Z.

There are four possible origins for master demand schedules that are used for simulations:

  • 'Manual Forecast/MDS. Open' (FCS350)
  • Copied from other MDS in 'MDS. Copy between Versions' (MPS110)
  • Copied from forecast in 'MDS. Copy from Forecast' (MPS100)
  • A sales budget that is copied to forecast in 'Manual Forecast. Update from Sales Budget' (FCS425) and then copied in 'MDS. Copy from Forecast' (MPS100).

Material plan version

The simulation environment for material plans is administered via the Material Planning (MAP) menu. Either a valid material plan or a valid material plan version can be used for a simulation.

Entering a material plan version

Material plan versions are entered in 'Material Plan Vsn. Open' (RPS050). Five versions can be specified, with a version designation range of A-E.

On panel (RPS050/F) specify the delivery plan that will be used to provide data for the material plan version.

Note that if one of the delivery plan versions in the A–Z range are used at simulation, it is not necessary to use the same version designation for the material plan version. For example, MDS version B can be used to provide input for material plan version D.

Creating a material plan version

A material plan version is created in 'Material Plan Database. Open' (RPS070). All files necessary for the simulation version are created by the system at the same time.

After the simulation is complete the database is removed from (RPS070). This is done so as not to use up memory unnecessarily.

Activating the simulation environment

When a material plan version is activated the user switches from the valid environment to a simulated environment.

A material plan version is activated via menu options that exists for the existing material plan versions in the Material Planning (MAP) menu. Specify VERA to activate version A, for example.

You will know when you are working in the simulation environment because "Simulation version" is displayed in the upper portion of the screen.

Some programs are blocked in the simulation environment - 'Req/Distr Order. Open' (MMS100) and 'Manufact Order. Enter' (PMS001), for example.

Other programs are not blocked - 'Item. Open' (MMS001) and 'Indented Bill of Material. Display' (PDS100), for example. In (MMS001) the regular item file can be maintained, but in (PDS100) only the planning file can be changed in the simulation environment.

Try to avoid changing basic data and transactions in the simulation environment (unless you intend to save the changes in an MDS) since these changes will affect the live environment.

Deactivating the simulation environment

To exit the simulation environment and return to the active environment, use the command VER.

Saving a simulated material plan

Material plans created in the simulation environment can be saved to the live environment in 'Material Plan. Calculate Regenerative' (RPS999).

In order to create the simulated material plan:

  • The delivery plan must be correctly put together.
  • The material plan version must be created (see above).
  • The material plan version must be activated - that is, the user must be working in the relevant version.

Defining a material plan version

Material plan versions are defined in 'Material Plan Vsn. Open' (RPS050).

The most important tasks to deal with at this stage are:

  • Deciding upon the MDS version that will be used for the material plan version.
  • Selecting the information that will be included in the simulation - on-hand balance, released orders and customer orders, for example. It is best to include the current on-hand balance and released orders if the simulation is to be based on the budget for the coming year, after which the total gross requirement will be exploded to calculate annual demand, and based on that, the reorder point. If, on the other hand, the simulation is intended as a capacity check, the current on-hand balance and released orders may not be relevant.
  • Determining whether or not the simulation will be handled according to planning method 1 (MRP planned). This is preferable if the reorder point items will be exploded to display annual demand on underlying levels. In this case the field 'Process planning method 2 as 1' (reorder point planned) is activated.

Analysis/Simulation result

One of the places in which material requirement can be analyzed is 'Material Plan. Open' (MMS080). Capacity requirements can be analyzed via the Capacity Requirements Planning (CRP) menu.

The results of the simulation can be used in the following ways:

  • To update in 'Annual Demand & Item Statistics. Update' (RPS620). In the item statistics, future budget records can be updated with budget quantity, forecast quantity and so on according to the user's selection. Annual demand can be updated for each combination of item and warehouse in 'Item. Connect Warehouse' (MMS002). If the simulation is based on a four-month period, annual demand can be calculated by specifying multiplier 3.
  • To transfer firmed orders from the simulation version to another version. The purpose of this is that after a capacity check orders that have been simulated can be accepted as firmed orders. Transfers are carried out in 'Material Plan Vsn. Transfer Firmed Order' (RPS650). Planned orders of status 20 or higher can be transferred according to the user's selection.
  • To calculate the coming year's costing rates. A number of cost driving units (CDU) are transferred, as well as the calculation of costing rates. It is, for example, possible to calculate CDU and costing rates in 'CDU and Rate. Calculate for Work Center' (PCS450).
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