What is Master Planning of Resources

MPR is defined as a grouping of business process that incluedes the following activites

1. Demand management, which inclueds forecasting, distribution planning and servicing planning

2. Sales and Operations Planning, which integrates the plans of business- sales, marketing, development, manufacturing, sourcing, and financial- and utilizes resource planning.

3. Master scheduling, which includes development of a master production sechedule and a final assembly schedule as applicable and which utilizes rough-cut capacity planning.

Master Planning of Resources Model

Start with the input from strategic and business plans. The business plan is developed based on the strategic goals of the organization.

Demand Management

APICS--The function of recogniziinig all demands for goods and services to support the market place. It involves prioritizing demand when supply is lacking. Proper demand management facilitates the planning and use of resources for profitable business results.

Three elements

Forecasting independent demand for all products and services

Planning distribution channels

Management of actual customer demand

Sales and Operation Planning

APICS--A process to develop tactical plans that provide management the ability to strategically direct its business to achieve competitive advantage on a continuous basis by integrating customer-focused marketing plans for new and existing products with the management of the supply chain.

A primary purpose of SOP is to establish Supply Rates that will achieve management's targets for projected inventory or backlog level, within defined supply constraints.

The output of SOP is the approved production plan, the sales plan, and the inventory/ backlog plan.