Plan
PLAN supply chain (P1) is the process of taking actual demand data generating a supply plan for a given supply chain, as defined by the supply chain project scope matrix. The basic steps require:
A unit forecast that is adjusted for marketing and sales events.
A supply plan that constrains the forecast based on availability or resources, such as inventory, manufacturing capacity, and trasportation.
A balance step where demand/supply exceptions are revolved and updated on the system
PLAN source (P2) is a process of comparing total material requirements with the P1 constrained forecast generated above and generating a material requirements resource plan based on P3 to satisfy landed cost and inventory goals by commodity type. This translates to a material release schedule that lets the buyer know how much product must be purchased based on current orders, inventory, and future requirements.