2.4 The Planning Hierarchy

7.2.4 The Planning Hierarchy

• Forecast vs. Firm Demand: How we translate customer "hopes" (soft forecast) into factory "reality" (firm orders).
• MRP (Material Requirements Planning): The engine that drives purchasing.
  • Regenerative MRP: Running the calculation daily/weekly.
  • Exception Messages: How planners manage "Push Out" (too much inventory) and "Pull In" (shortage risk) signals.