Long Term Planning Business Consulting Ankit Sharma Long term planning (Simulative MRP) is used to simulate the future demand and supply situation in all BOM levels. The main function is to check the capacity situation, material requirement and vendor ability to provide the material in desired time. ‘This is not an actual run but a simulative run where actual planning situation is not being affected, and we can see the capacity situation of the work centers well ahead in time. If such information is available in advance, then we can decide at an early date whether additional machines will be required to cope with capacity bottlenecks. + LTP (Long Term Planning) is nothing but MRP run in simulation version fo simulate the production plan for the future Its possible to transfer the plan from simulative version to operative version "00" (actual planning) if through simulation it is found that all capacity and requirement can be fulfilled. . ‘The purchasing department can also utilize the outcome of long-term planning. They use s to estimate future purchase orders. This the information on the future requirement quant provides them with an opportunity to negotiate delivery schedules and contracts with vendors. a Vendors also have an advantage from long-term planning results as they are sent a preview of future estimated purchase orders and delivery schedules. . Generally, Planned Independent Requirement (PIR) version can be either active or inactive. For LTP planned independent version should be inactive as it is a simulative version. Only active PIR version is being taken for operative planning (MRP). . Existing master data can be used for LTP. But to have a different master data (BOM and Routing) for LTP is also possible. . If you want to delete the Long term planning data, then you need to delete the planning scenario and you can re-run whole cycle again with new requirement again in another inactive version. a Long term planning data can also be utilized to transfer routing activity quantities to the respective cost centers. Controlling department can calculate activity price calculation by dividing the cost center budget value and activity quantity (calculated by LTP run) which is used for standard cost calculation.Long Term Planning Business Consulting Ankit Sharma 1. Create the planning scenario by the transaction MS31. © wenu Edt Envorkes Extrgs System Heb @ (H\€@e@\2HR 2048/18 OlLong Term Planning Business Consulting Ankit Sharma TE ponnng Scenaro Edt Got Sytem Heb @ *)48'CO@ CHK D005 \ HH)