Lean Supply Chain Management Essentials

dependent deMand MaterIaLs 75

implies that different tools are probably needed for each horizon. It is also important

to understand that the length of these horizons will be different for different indus-

tries, with inherent challenges being different as well. For instance, the long-term

planning in the aircraft industry may well cover five years, while in consumer goods

it may be less than one year. (ink in terms of the industries’ material planning, not

their business planning.)

Long-Term Planning

• Long-term planning should be mainly for capacity and scarce materials.

• Rough cut planning or MRP?

• MRP typically understates long-term requirements. is is because inventory

reductions are often overstated in the planning system.

Most long-ter ...