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 the IFS/Material Requirements Planning (MRP), IFS/Master Scheduling (MS), and IFS/Project MRP (PMRP) solutions. These simulations follow the same rules and concepts as the standard MRP, MS, and PMRP 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, Master Scheduling, and PMRP 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, enabling you to perform what-if analysis by running Master Scheduling, MRP, and PMRP 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 you to explore different planning situations without affecting live data. Simulation results cannot be transferred or released to the live scenario; to act on a simulation outcome, apply the corresponding changes manually in the live system.

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.

 

Simulation Sources

Supply, demand, and key part planning data can be brought into Master Schedule, MRP, and PMRP simulations 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

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,  Project 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, Project MRP, and Master Scheduling run (Material Planning Scenario 1) into the simulation profile using the Import Scenario 1 Results to Simulation Profile assistant. 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.

PMRP simulation reads the same simulation profile as MRP simulation, so one import using the Import Scenario 1 Results to Simulation Profile assistant prepares the profile for both. For project parts, additional simulated demands can be entered per project activity on the Simulation Profile - MRP Parts page, under the Additional Demands tab, making it possible to evaluate the impact of potential project material requirements.

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.

 

Master Schedule Simulation

A Master Schedule simulation is fundamentally another Master Schedule Level 1 run, executed on a Material Planning Scenario other than scenario 1. It follows the same rules and concepts as the live Master Scheduling process: forecasts are consumed by demand, and planned receipts, projected balances, and available-to-promise are calculated for the selected scenario. This makes it possible to evaluate the effect of changed forecasts and additional demands on the master schedule without affecting live Master Scheduling data. Rate by period, which spreads and levels Master Schedule supply proposals, is also defined per Material Planning Scenario, so a simulation can be leveled with different periods and rates than the live plan.

To perform a Master Schedule simulation, use the Calculate Master Schedule Level 1 assistant.

You can also run a Master Schedule Live Snapshot simulation for a single part directly from the Master Schedule by Part page using the Run MS - One Part command, optionally with a planning lever. A Master Schedule simulation can also run integrated with CRP, calculating simulated machine and labor operation loads for the simulated supply proposals.

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 Master Schedule-planned top-level parts exist but the simulation is started with an MRP simulation instead, the process begins by exploding demand to the MRP‑planned parts using the planned receipts already calculated for the Master Schedule Level 1 parts in the selected Material Planning Scenario. Conversely, if the top-level parts are MRP‑planned and a child part is Master Schedule‑planned, the MRP simulation process automatically performs a Master Schedule calculation for that child part, within the same Material Planning Scenario.

Simulation results are analyzed per Material Planning Scenario on the Master Scheduling pages, and Master Scheduling action messages can be used to identify where the simulated schedule needs attention.

 

MRP Simulation

An MRP simulation is fundamentally another MRP run, executed on a Material Planning Scenario other than scenario 1. It follows the same rules and concepts as the live MRP process: demands are netted against available supply level by level, planning methods and lot sizing rules are applied, and supply proposals and MRP action messages are generated for the selected scenario. This makes it possible to evaluate how changed demands, supplies, or planning parameters would affect the material plan without affecting live MRP data.

To perform an MRP simulation, use the Perform MRP Simulation assistant. MRP simulations can be run for a site or a planning network. You can also start a site MRP simulation automatically once the Master Schedule simulation completes, directly from the Calculate Master Schedule Level 1 assistant, using the same scenario, simulation source, and planning lever.

The supply proposals of an MRP simulation remain virtual and exist only within the selected Material Planning Scenario. Simulation results are analyzed per Material Planning Scenario, for example, on the MRP Part Information page filtered on the scenario. An MRP simulation can also run integrated with CRP, calculating simulated machine and labor operation loads for the simulated supply proposals.

You can also run a quick MRP Live Snapshot simulation for a single part directly from the MRP Part Information page using the Simulate MRP for Part command, optionally with a planning lever. The command is available for Material Planning Scenarios other than scenario 1.

 

PMRP Simulation

Project Material Requirements Planning (PMRP) simulations extend Material Planning Simulation to project-based material planning. A PMRP simulation runs the PMRP process for a Material Planning Scenario other than scenario 1, so that project supply and demand situations can be evaluated without affecting live project planning data. It follows the same rules and concepts as the live PMRP process: parts are planned per project activity, supply is netted through the pegged supply ledger, and material can be shared between activities within Planned Netting Groups.

To perform a PMRP simulation, use the Perform PMRP Simulation assistant. You can also run a live snapshot simulation for a single project-connected part directly from the MRP Part Information page using the Simulate Project MRP for Part command, optionally with a planning lever. The command is available for Material Planning Scenarios other than scenario 1.

Just as with live PMRP, the simulation can be executed with three calculation types:

Supply, demand, and key part planning data can be brought into a PMRP simulation through the same three Simulation Source options described above.

While a live PMRP run creates actual supply proposals, such as shop order requisitions and purchase requisitions, the supply proposals of a PMRP simulation remain virtual and exist only within the selected Material Planning Scenario. The simulation performs the same netting as live PMRP, including the use of surplus from other activities within a Planned Netting Group, borrowing with payback, and the use of standard inventory where the project site allows it.

Material transfer requisitions behave differently from other supply in a simulation. A PMRP simulation creates material transfer requisitions for the selected scenario where the netting calls for them, but it never executes them. No material is moved or reserved. The created material transfer requisitions can be reviewed for the simulation scenario to understand which transfers the simulated plan would require.

A PMRP simulation can start a site MRP simulation for the same scenario, simulation source, and planning lever, once it completes, so that non-project parts and dependent demand outside the projects are planned in the same scenario. It can also run integrated with CRP, calculating simulated machine and labor operation loads for the simulated project supply. PMRP simulation results are analyzed per Material Planning Scenario; project-connected parts are included per project activity in the MRP Part Information page, as well as in aggregated results and scenario comparisons.

PMRP Simulation Using Simulation Profile

In addition to withholding the creation of real supply proposals and the execution of material transfer requisitions, a PMRP simulation that uses Simulation Profile as the Simulation Source differs from a live PMRP run in several ways.

No new snapshot of live data is taken when the simulation runs. Instead, all supply, demand, and planning data come from the simulation profile.

The standard inventory available for material transfer requisitions is captured by the Prepare PMRP Simulation Profile Data background job after each live Material Planning Scenario 1 MRP run. The job captures a snapshot of nettable stock in standard inventory by inventory location. When the MRP run is limited to selected parts, only those parts are stored.

When the MRP run is executed for a planning network, the job is posted for each site in the network.

Because the job is posted at the end of the live MRP run, the sum of the captured inventory quantities by location and the Beginning On Hand quantity of the live standard inventory can differ, although the values are typically close. The PMRP simulation sums the captured location-wise quantities to determine the total standard inventory available for transfer. It does not use the Beginning On Hand quantity stored in the simulation profile. The Import Scenario 1 Results to Simulation Profile assistant copies the stored location-wise inventory quantities into the selected Material Planning Scenario. When Use Std Inventory in Project MRP/Project MS is enabled for the project site, the PMRP simulation uses these quantities to calculate how much material can be transferred from standard inventory to project demand.

Planning Levers

Planning levers make it possible to vary key part planning parameters in a simulation, for example, the planning method, safety stock, lot sizes, or primary supplier. A planning lever is a named, reusable set of simulation planning parameter values, defined per inventory part on the Inventory Part Planning Levers - Site page, or per planning network on the Inventory Part Planning Levers - Planning Network page. On a network planning lever, you can connect a site planning lever to the sites in the planning network. When an MRP simulation is executed for the planning network, the connected site planning lever is applied for each site. A site without a connected site planning lever is still included in the simulation and is planned with unchanged planning values.

When an MRP, Master Scheduling, or PMRP simulation is executed with a planning lever, the simulation values override the corresponding live planning parameters for the included parts, for that run. Live inventory part planning data is never changed. For more information, refer to the About Planning Levers document.

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 generated in simulations.

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, Master Scheduling, and PMRP 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, MRP, and PMRP 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, Master Scheduling, and PMRP results into planning periods for a selected Material Planning Scenario. Project parts planned by PMRP are aggregated per project activity. 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 Scenario - 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 Scenario - Machine Load and Aggregated Planning Scenario - Labor Load pages.

 

Comparison of Aggregated Planning Scenarios

Aggregated results of multiple Material Planning Scenarios can be compared side by side, so that alternative planning assumptions can be evaluated against each other. Because supply and demand data can contain a large number of daily records, event-level comparisons can be difficult to analyze. To address this, each scenario is first summarized into planning periods, and the comparison pages display the period values for the selected scenarios in one chart and one table. This provides a fast, visual answer to questions such as how a simulated demand increase changes projected inventory, or whether a scenario overloads a work center.

Three comparison pages are available:

Each comparison uses up to three Material Planning Scenarios, selected as Base Scenario, Primary Scenario, and an optional Secondary Scenario. The base scenario is the reference that the other scenarios are measured against. To compare simulations against the live plan, select Material Planning Scenario 1 as the base scenario. All compared scenarios must be aggregated with the same period template, so that their values fall into the same time buckets.

The material comparison presents, per period, the total demand, total supply, and projected on hand of each selected scenario for one inventory part at a site. The values are displayed in a chart, where demand and supply shown as bars and projected on hand appears as lines, and in a detailed table that also expresses the primary and secondary scenario values as percentages of the base scenario values. You can select which of the metrics to display and limit the chart to a range of periods. For project parts, the comparison can be narrowed to one project and, optionally, one project activity.

The load comparisons present, per period, the aggregated operation load of each selected scenario for one work center or labor class, together with the available capacity. The load values are broken down into Master Scheduling and MRP planned load, released load, miscellaneous load, and resource break load. The chart can display the load in hours against capacity lines, including overload and underload threshold lines calculated from percentages you specify, or display the load as a percentage of capacity. This helps identify the periods in which a simulated plan exceeds capacity compared to the base scenario.

The comparison pages read only aggregated results. Every scenario you want to compare, including the base scenario, must be aggregated using the same period template before it appears on a comparison page. It is recommended to aggregate all compared scenarios close together in time. If the period template is recalculated between aggregations, the period time buckets of the scenarios no longer align.

For load comparisons, the aggregated load of a simulation scenario also includes the firm loads taken from the live CRP data at the time of aggregation, so scenarios aggregated close together reflect a similar live load situation and remain directly comparable. Each comparison page has an Aggregation Details tab that shows when each selected scenario was last aggregated, which helps you judge whether the compared values are current. If aggregated results are removed with the Cleanup of Aggregated Planning Scenario assistant, the corresponding comparisons are removed as well.

The Aggregated Planning Scenario - Material Variance page complements the material comparison. Instead of charting one part, it lists the variance between a base scenario and an alternate scenario for many parts at a time, per part, project activity, and planning period, with the base value, the alternate value, the variance, and the variance percentage for demand, supply, and projected on hand. It also displays the planning parameters used in each scenario, making it easier to identify the parameters that contribute to a variance. Use it to find where two scenarios differ most, and then study individual parts on the comparison page.

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 MRP, Master Scheduling, and PMRP simulation results 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