Material Planning Simulation

Material Planning Simulation is a planning tool that enables organizations to model and evaluate various demand and supply scenarios without impacting live supply and demand data. It helps analyze how changes in demand and corresponding supply could affect the overall supply chain and manufacturing operations. 
This simulation capability supports tactical decision-making, risk mitigation, and agile responses to dynamic market conditions.

IFS/Material Planning Simulation is an umbrella term that refers to simulations conducted using both IFS/Material Requirements Planning (MRP) and IFS/Master Scheduling (MS) solutions. These simulations follow the same rules and concepts as the standard MRP and MS processes. Material Planning Simulation also integrates with IFS/Capacity Requirements Planning (CRP), allowing you to simulate both machine and labor operation loads based on the supply proposals generated by the MRP and Master Scheduling simulations. 

Different simulation runs are represented by Material Planning Scenarios, which define specific material setups used to simulate varying supply and demand outcomes. These scenarios are defined on the Material Planning Scenarios page. 
Material Planning Scenario 1 (Planning Table for MRP and CRP) is automatically created during system installation and represents the live execution of MRP or MS. All other scenarios are user-defined and are used exclusively for simulation purposes. It enables users to perform “what-if” analysis by running MS and MRP simulations independently of the live execution scenario (scenario 1).

While live MRP or Master Scheduling creates actual supply proposals, such as Shop Order Requisitions, Purchase Requisitions, Production Schedules, or Supplier Schedules, simulations do not create real supply proposals. Instead, simulated supply and demand explosions remain virtual, allowing users to explore different planning situations without affecting live data.

Material Planning simulation supports parallel execution across multiple planning scenarios for the same site or planning network. This flexibility allows planners to execute simulations for different material setups simultaneously, enabling faster comparisons, improved scenario analysis, and more informed decision-making, all without disrupting live operations.

In the broader planning process, Material Planning Simulation fits into a comprehensive, end-to-end flow that can either start with a common, agreed-upon game plan established through Sales & Operations Planning (S&OP) and/or with developing a demand forecast in Demand Planner. Once this consensus plan or forecast is in place, it is imported into Master Scheduling (MS), where planners run MS to generate an initial supply plan. This is followed by a review of key MS pages to validate assumptions and identify potential imbalances.

After this review, the plan’s capacity feasibility is evaluated through Rough Cut Capacity Planning (RRP), which highlights potential constraints at a high level and helps confirm whether the proposed Master Production Schedule is realistic from a resource perspective. Based on these insights, adjustments may be made to the Master Production Schedule to resolve bottlenecks or refine priorities, after which RRP is rerun to verify that capacity concerns have been addressed.

With demand, capacity, and the S&OP game plan aligned, an MRP Simulation is finally performed to analyze material availability and evaluate planning outcomes, ensuring that procurement and production signals support the broader, cross-functional plan

 

MRP and Master Scheduling Simulation

MRP and Master Scheduling simulations are fundamentally another MRP and MS run, executed on a Material Planning Scenario other than material scenario 1. To perform these simulations, use either the Perform MRP Simulation assistant or the Calculate Master Schedule Level 1 assistant.

Supply, demand, and key part planning data can be brought into the simulation through three Simulation Source options;

  1. Simulation Profile - uses a predefined simulation profile
  2. Live Snapshot - uses a live snapshot of the current system data
  3. Live Snapshot with Additional Demands - uses a live snapshot plus additional simulated demands

Just as with live MRP or Master Schedule calculations (scenario 1), if there are top-level parts planned with the Master Schedule, it is recommended to begin with a Master Schedule calculation. If all the top-level parts are MRP‑planned, it is enough to start with an MRP simulation because, during the MRP process, when a child part is Master Schedule‑planned, a Master Schedule calculation for that part is performed automatically.

If Master Schedule–planned top-level parts exist, but the simulation is started with an MRP simulation, the process begins by exploding demands to MRP‑planned parts using the planned receipts already calculated for Master Schedule Level 1 parts in the selected Material Planning Scenario.

MRP Simulations can be run for a site or a planning network. However, Master Schedule Level 1 simulation can only be calculated at the site level.

Simulation Profile

When Simulation Profile is selected as the Simulation Source, the simulation uses the data on the selected simulation profile. This means that independent demands, open supply orders, on-hand inventory, and key planning parameters remain unchanged throughout each simulation run. This provides a stable baseline for simulation runs, ensuring repeatability and clarity when comparing different planning scenarios. 
Since the data is not retrieved live during each run, this method also reduces execution time and offers performance benefits. 


A simulation profile allows you to manage supply and demand data for MRP‑planned parts and Master Schedule‑planned parts. It is defined per site and per Material Planning Scenario. There are two pages for managing simulation profiles based on the planning engine:

Existing demands, open supply orders, along with relevant planning parameters, can be imported from the latest live MRP and Master Scheduling run (Material Planning Scenario 1) into the simulation profile using the Import Results from Material Planning Scenario One job. These imported values are stored under the Existing Demands, Existing Supplies, and MRP Planning Data or Level 1 Part Planning Data tabs.

Independent demand quantities and required dates can be modified for selected demand sources, provided the simulation required date is a working date in the site manufacturing calendar.
Editable demand sources include:

Additional hypothetical demands, such as potential customer orders, can be entered on the Additional Demands tab. Including or excluding an additional demand in the subsequent simulation runs can be controlled using the Include in Simulation toggle without deleting the simulation demand line. For Master Schedule‑planned parts, the Simulation Abnormal Demand toggle indicates whether a simulated independent demand is treated as a normal demand or as an abnormal demand.

Live Snapshot

When Live Snapshot is selected as the Simulation Source, the Material Planning Simulation uses the most current material positions by retrieving live data from inventory, customer orders, purchase orders, and other relevant sources. If no changes have occurred since the last MS or MRP run and Master Schedule forecasts remain unchanged, results from the simulation will closely match live execution.

Live Snapshot with Additional Demands

When Live Snapshot with Additional Demands is selected as the Simulation Source, the simulation uses the current supply and demand data and adds simulated independent demands that are recorded on the Simulation Profile – MRP Parts and Simulation Profile – Master Schedule Parts pages, under the Additional Demands tab. This functionality makes it possible to evaluate the impact of hypothetical increases in demand on the current supply and demand scenario, offering insights into potential planning outcomes.

 

Action Proposals

MRP and Master Scheduling action messages can be used to analyze simulation results and derive meaningful insights. Standard MRP Action Messages and Master Scheduling Action Messages generated during a live (scenario 1) calculation are also applied in simulation.

Note: When using a simulation profile for simulation, the system does not take a new snapshot of live data. As a result, some MRP action messages that are generated during that snapshot phase are skipped. 
The following messages are not regenerated:

 

Capacity Requirements Planning (CRP) Simulation

CRP Simulation evaluates the capacity impact of a Material Planning Scenario by calculating machine and labor operation loads based on simulated MRP and Master Scheduling supply proposals. It applies the same Shop Order Scheduler logic used in live CRP, allowing you to explore capacity behavior under alternate planning assumptions. You can use the Perform CRP Simulation assistant or run it integrated with Master Scheduling and MRP Simulations.

Simulated load sources, such as MRP and Master Scheduling proposals, are combined with all other load sources taken directly from live CRP tables, giving a unified view of both simulated and actual CRP loads on the Simulated Machine Load Details and Simulated Labor Load Details pages. 

 

Aggregation of Results - Material

Aggregation of Material summarizes MRP and Master Scheduling results into planning periods for a selected Material Planning Scenario. It groups demand, open supply, requisitions, projected on‑hand quantities, and other material planning elements into time buckets defined by a period template. Both scenario 1 and simulation scenarios are supported, creating a structured view of material behavior across the planning horizon. The aggregated values provide a simplified overview of material requirements, supply timing, and projected balances across alternate planning assumptions.

This aggregation is performed using the Aggregate Planning Scenario – Material assistant, and the results are displayed on the Aggregated Planning Scenarios – Material page.

 

 Aggregation of Machine and Labor Loads

Aggregation of machine and labor loads summarizes machine and labor operation loads for a selected Material Planning Scenario into predefined planning periods. It uses a period template to organize operation loads into time buckets and supports both scenario 1 and simulation scenarios. For simulation scenarios, the system also calculates period‑level differences against scenario 1 using previously aggregated values. The aggregated results provide a consolidated view of changes in capacity demand across scenarios.

This aggregation is performed using the Aggregate Planning Scenario – Machine and Labor Loads assistant, and the results are displayed on the Aggregated Planning Scenarios – Machine Load and Aggregated Planning Scenarios – Labor Load pages.

 

Cleanup of Aggregated Planning Scenario

To prevent confusion caused by obsolete aggregated results, maintain data accuracy, and optimize database storage for better system performance, you can clear aggregated results using the Cleanup of Aggregated Planning Scenario assistant. It deletes aggregated material, machine load, and labor load data generated for the selected scenario.

 

Cleanup of Material Planning Simulation Results

The Cleanup of Material Planning Simulation Results job is used to clear outdated or unnecessary simulation results from the MRP tables and their respective simulated CRP loads without deleting the associated Material Planning Scenario or any created simulation profiles. 
This ensures that users work with the most relevant and current data, prevents confusion caused by obsolete simulations, and optimizes database storage for better system performance.

 

Limitations of Material Planning Simulation