Optimization and Central Planning: Compass or Advanced Navigation

Two ongoing questions are: (1) when an organization migrates from an Excel-based central/supply/master plan is it best to go to a rule-based method or an optimization-based method and (2) is optimization a compass that identifies true north or is it an advanced navigation system. This blog outlines my view and alternative views on each question.

By |2020-03-09T17:50:50-04:00February 26th, 2020|Supply Planning, When to optimize|0 Comments

RCCP versus MPS –historic terms and a path to inadequate organizational performance

Where did the terms RCCP and MPS come from? Reading the recent blog “RCCP versus MPS – Can They Be Connected?” it struck me whether this question represents the current best in class or do they represent old terms as well as an old way of thinking that should not be the end goal of an organization any more when it comes to supply chain planning.

By |2019-10-30T09:29:53-04:00October 30th, 2019|RCCP, Supply Planning|0 Comments

RCCP versus MPS – Can They Be Connected?

Master Production Scheduling (MPS) plans for items that are independent (or direct) demand. Independent Demand is a demand that comes from Sales Orders, Service Orders, or forecasts on end items, i.e., items that we sell to customers. In RCCP, the principle assumption is that family-level assumptions are good approximations for the SKU level detail and the change in the mix will not have a big impact on the capacity projection.

By |2019-10-29T11:36:21-04:00October 2nd, 2019|RCCP, Supply Planning|0 Comments

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