apo

[Former Member]

Hi

Can Anyone Please Explain the major Difference Between constrained and unconstrained planning ?HOw can we decide the planning is constrained or unconstrained?

Thanks

prasanna

[Former Member]

Hi Prasanna,

The difference lies in the term AVAILABILITY.

In a typical supply chain, availability will be generallly a

challenge in terms of production or a procurement

environment.

The availability could be anything like resource as

resource capacity, material (finished, HALB, raw

material).

In a typical MTS scenario, generally availability will not

be taken into a constraint because items will not be made

on a sales order basis. Hence generally for MTS scenario,

we use unconstrained planning (not a thumb rule, depending

upon the business). Here, all items are assumed to be

available and there are no constraints during planning and the

planning system is so simple.

When there is availability issues for a product, capacity, plant

etc., then it is termed as constrained planning and here,

choosing exact the supply against the demand will be a

challenging process and hence to be optimised.

Regards

R. Senthil Mareeswaran.

[Former Member]

Hi,

Un constraint planning mens there are no constraints to Planning. Constraints can be in the following ares

1. Material availabilty (No material shortages)

2. Resource capacity (Infinte capacity is available for planning)

3. Toolings:( No shortages of toolings at any time)

In case you do not wish to consider any of the abovementioned constraint, it is un constraint planning, also called as open end MRP

In case you want planning engine to respect the above constraints, it is constraint planning.

I believe, this will clear basic fundamentals of planning

Please let me know, in case you need any additional information

Thanks,

Mangesh A. Kulkarni