Why would you do Long Time Planning?

Long Term Purchase Planning – Focus 3 weeks to 18 months
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Presenter: Sune Lohse, Chief Strategy Officer

Why is long time planning important when working with Business Central?

So normally a long-term planning will be everything on the other side of 3 months from now, maybe up to several years, and the long-term planning is about if you get items far away on the other side of the earth or something, and they have a long lead time, you have to order them maybe in bulks and you have to sell them in and it’s like 6 months or even more, but whereas your production item has often a shorter lead time because you can speed up the process by Self.

This is what happens in the video

So if you are a planner and you need to make agreements with the vendors or you need to actually place the order far head and long-time ahead, you need to break down the requirements based on a sales forecast of some kind.

So there will be some salesperson or sales responsible saying this is our expected forecast for the next year, and you need to break that down using MRP planning or other tools to figure out what should I buy now to fulfill my requirements for the next long time.

In that case, you can get the item back for the master planners to actually be able to do the master planning and have the items in stock.

So the problem in the long term planning is that if you just use the normal MRP batch job and create a lot of firm planned orders, the master planners will have a lot of noise in their planning.

So, therefore, you need to figure out a way as a purchaser where it’s possible for you to gain this data without making noise on the master planner that often have a much shorter horizon.