What is rough-cut capacity planning in SAP SRD-SCM-MD - SCM-Master Data?

SAP Term: rough-cut capacity planning

• Component: SRD-SCM-MD

• Component Name: SCM-Master Data

• Description: The transforming of the master production schedule into requirements for the main resources, which can include labour, machinery, and the capacity of suppliers to deliver. Capacity comparisons can be done for each resource to create a workable master production schedule.

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• Key Concepts: 
   Rough-cut capacity planning is a process used in supply chain management to determine the capacity requirements of a production system. It is used to identify the resources needed to meet production goals and to ensure that the resources are available when needed. It is a tool used to plan for future capacity needs and to identify potential bottlenecks in the production process. 
  
  How to use it: 
  Rough-cut capacity planning is used to identify the resources needed to meet production goals. It involves analyzing the current production system and determining the resources needed for each step of the process. This includes analyzing the current capacity of each resource, such as machines, labor, and materials, and determining how much additional capacity is needed. The analysis also includes identifying potential bottlenecks in the production process and determining how they can be addressed. 
  
  Tips & Tricks: 
  When using rough-cut capacity planning, it is important to consider both short-term and long-term needs. Short-term needs should be addressed first, as they are more immediate and require more immediate action. Long-term needs should be addressed after short-term needs have been met, as they require more planning and preparation. Additionally, it is important to consider potential changes in demand or supply when making capacity plans. 
  
  Related Information: 
  Rough-cut capacity planning is closely related to other supply chain management processes, such as demand forecasting and inventory management. Additionally, it is often used in conjunction with other tools, such as simulation models, to help identify potential bottlenecks in the production process.