LTP and Rough cut planning with Demand Mangment

[maulik_vania]

Hello ,

I am quite new for the planning topics.

Need help for the understanding difference between  long term planning and Rough cut planning.

I would like to know in which industry or for which process scenario we choose long term planning and Rough cut planning? Also both this planning scenario how affect or related to the Demand Management.

It will great Help if you put some example with brief process description or scenario details.

Regards,

Maulik

[Caetano · Accepted solution]

Hi Maulik

Long term planning is a simulative scenario of your operational MRP. You can create many different scenarios and compare the results at semi-finished and component level.

Rough cut capacity planning is used together with sales and operations planning. It is a higher level of planning, where you will only input the quantities of the finished products and check if there is enough capacity to fulfill your plan.

BR

Caetano

[maulik_vania · Accepted solution]

Hello Caetano,

Thank you for your reply.

So like "Long term planning " is there any other simulative scenario also there in Planning?

In which scenario i can use Long term planning and in which scenario i can use Rough cut planning?

And how Long term planning and Rough cut planning is related to DM?

Reagrds,

Maulik

[Caetano · Accepted solution]

Hi Maulik

There is also Sales and Operations Planning (SOP) which is a higher level of planning, that also allows you to create different scenarios.

Rough-cut capacity planning is used together with SOP. Here, you will generally plan at finished product level, using the sales forecast.

Long-term planning is a more operational tool, very smilar to MRP, but simulative.

SOP data can be transfered to DM and LTP can use DM data as an input.

I suggest you to read the documentation of both functionalities for a better understanding of each one:

Rough-cut Capacity Planning:

Executing Resource Leveling - Sales & Operations Planning (LO-LIS-PLN) - SAP Library

http://wiki.scn.sap.com/wiki/display/ERPMan/Rough-Cut+Capacity+Planning+on+SOP

Long term planning:

Long-Term Planning (PP-MP-LTP) - SAP Library

BR

Caetano

[former_member184655]

Dear Maulik,

As rightly said by Caetano, LTP & rough cut planning is not at least industry specific.

LTP is otherwise called as a Simulative MRP, where in the annual/half yearly plan(production Plan) is

maintained as inactive plan in the form of planned independent requirements and after carrying out

simulative MRP (LTP run),we can check the capacity feasibility for the work centers using the report

CM38 /vendor analysis using the report MCEA.

so many planning scenario's can be created for different plans and based on the results the production

plan can be either adopted or adjusted or any management decisions can be taken.

Regards

Mangalraj.S