All supply chains have a need to balance supply with demand. Typically, this requires checking whether there is enough capacity to satisfy the demand. It could also require checking if there is enough supply available of key raw materials. In many industries, this is done at different levels by different planners.
RCCP deals with planning over a long horizon that supply chain planners use to balance demand and supply. This is typically done in monthly time buckets, with the horizon being 12 to 18 months. As part of the planning process, the planner makes tradeoffs between different decisions. For example, they might use the tool to decide whether an extra shift should be added or if some demand should not be supplied. Or they might look at changing the supply location for a particular demand.
Since RCCP is done by the planner, typically a higher level of product hierarchy is used (Lower level would create a lot of data volume which the planner might find too much to deal with.) For example, very often, this is done at the product family level.
The Arkieva tool supports RCCP by allowing users to:
- Structure the data
- Visualize the data
- Aggregate/disaggregate data
- Simulate decisions
- Keep track of user edits
- Measure plan performance
The key outputs include:
- Production plan
- Shipment plan
- Projected inventory
- Purchase Plan for key raw materials
Key Benefits to the business include:
- Collaborative decision making
- Ability to simulate different what-ifs
- Visually evaluate the impact of decisions
- Integration to desktop tools like MS Excel