Finite Carbon Planning
Can Finite Capacity Planning save the planet? Probably.
Finite Capacity Planning helps you answer an important question about manufacturing: “Since we can only manufacture so much on any given shift, what should we make?” Or, more formally stated: “Since our factory has finite capacity, what’s the optimum production mix?”
Planning systems typically look at three variables – production capacity, supplies, and open orders – to calculate the optimal mix. The system needs to know how many resources are available as well as any special capabilities they might have. It also needs to know what supplies are on hand and what will arrive during the shift. It also needs to know what orders are open, what they require, and what the rules are. The rules may include how to handle priority customers, how to manage split deliveries and so on.
Finite Capacity Planning is a goal seeking system; the optimal mix depends on what your goal is. If your goal is to meet as much demand as possible, the optimal solution might include large production runs of high margin products. If your goal is to ensure that all orders from priority customers are filled, , you get a different solution. If you’re trying to reduce overtime charges, the solution would change again as the system may choose to build stock in periods of low demand. The math behind all this can be quite daunting.
But what if you’re trying to reduce carbon output? A good Finite Capacity Planning system can still calculate the optimal mix. The question becomes, “Given that we only want to produce x tons of CO2 today, what’s the optimal production mix?” The math is essentially unchanged – we’re just seeking another goal.
Finite Carbon Planning is another way that ERP systems can help you reduce your environmental impact. That’s a goal we can all seek together.
To read more about Lawson's capacity planning products, including Demand Planner, Multi-Site Planner, Advanced Production Planner, and Global Capable-to-Promise, please click here.
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