Production planning

What to make, where and when, within capacity.

Production planning balances demand against the capacity of every line and plant, and spots bottlenecks weeks ahead. Linear and mixed-integer optimisation finds the optimal production plan, with materials, batch sizes and stock targets in view.

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Production planFeasibilityScenarios
Optimiser
Example · 3 lines, weeks 12–19, load against capacity
Capacity utilisation
84%86%
Demand met
96.1%98.4%
Over capacity
1 weekNone
W12W13W14W15W16W17W18W19Line 178%82%85%80%76%74%81%79%Line 286%91%84%122%95%88%83%80%Line 370%68%74%72%76%70%66%72%100%94%
Line 2 over capacity in week 15Move 400 units to Line 3, which has room that week
Accept
3levels

capacity checked per line, plant and shift

LinePlantShift
LP + MIP

linear and mixed-integer optimisation finds the optimal plan

Weighed together
CostCapacityService
1data model

shared with demand, inventory, procurement and scheduling

DemandInventoryProcurementScheduling
What goes inWhat comes outDemand planConsensus forecast by item and weekStock targetsSet by inventory optimisationCapacity and shiftsPer line, plant and shiftBatch sizes and lead timesMinimum runs and production limitsCosts and prioritiesProduction, holding, margin, urgencyOptimiserLinear and mixed-integerfinds the optimal planProduction planBy line, plant and weekBuild-aheadFor peaks, within stock targetsMaterial requirementsFed to procurement planningHand-overTo production scheduling
Planlinear and mixed-integer
Demand and stock targetsConsensus forecast, targets from inventory
Capacity and constraintsLines, plants, shifts, batch sizes, costs
Production planBy line, plant and week, with build-ahead
Material requirementsFed to procurement planning
Hand-overTo production scheduling

What you can do

A production plan that is optimised.

Rough-cut capacity

Bottlenecks seen weeks ahead

  • Planned against available capacity per line, plant and shift, weeks and months ahead.
  • Bottleneck detection flags every week that runs over, with the options that solve it.
  • Shifts, cleaning and maintenance, holidays and working hours sit in the calendar the plan respects.
Capacity load
Example · Line 2, weeks 12–19
LoadCapacity
Capacity 1,800W12W13W14W15W16W17W18W19Line 2 over capacity in week 152,200 units planned against 1,800BottleneckIN THE CALENDAR · LINE 2ShiftsCleaning and maintenanceHolidaysWorking hours

Scenario simulation

Every option, with its cost and service

  • Test alternative production strategies and choose the plan with the best utilisation.
  • Building ahead, moving volume to another line or plant, or adding a shift, compared side by side.
  • Change production limits, lead times or batch sizes and recalculate in seconds.
Scenarios · week 15 overload
Example · Line 2
OPTIONEXTRA COSTSERVICEAdd a Saturday shiftExtra cost, no stock build-up€4,80098.0%Build 400 ahead in week 13Within the stock target€2,30098.1%Move 400 units to Line 3Line 3 at 72% in week 15€1,90098.4%OPTIMISER · RECOMMENDED PLANMove 400 units to Line 3 in week 15Lowest extra cost and the highest serviceAccept

Automated planning proposals

Proposals with the logic attached

  • Optimised production proposals with clear logic and full transparency; planners approve the change.
  • Component and raw material needs follow from the plan and feed procurement planning, so runs match material availability.
  • One integrated view, aligned with demand planning, inventory and production scheduling.
Production proposals
Example · weeks 13–15
Move 400 units to Line 3Week 15 · Line 2 back within capacityAcceptBuild 1,200 ahead in week 13SKU-4471 · within its stock targetAcceptRaw material check · RM-104Requisition passed to procurement planningCoveredHAND-OVER · PRODUCTION SCHEDULINGApproved plan sent on to production schedulingSequenced per line, with changeovers and shifts

Learn more

Learn more about production planning.

Capacity planning in manufacturingRough-cut capacity planningMRP and CRPProduction optimisation softwareManufacturing optimisation softwareNext step: production scheduling

FAQ

Production planning, answered.

What does production planning decide?

What to make, on which line and plant, and in which week, so demand is met within capacity, batch sizes and stock targets, at the lowest cost.

How do you balance production and capacity without overloading resources?

Production planning matches what you make, when and how much, usually by week or month, to the capacity you really have. Shifts and staff availability, cleaning, maintenance and downtime, energy costs and working hours, holidays and demand peaks are all part of the plan. Planners can then decide to build ahead, hold safety stock or delay a run, instead of rushing at the last minute or leaving capacity idle.

How do optimisation and AI work together in production planning?

The plan itself comes from optimisation: linear and mixed-integer programming find the best plan within every constraint. AI adds value around it, by turning business rules into constraints the model can use, flagging bottlenecks before they happen and learning from past data which use of lines and people works best.

What are common challenges in capacity planning?

Fluctuating demand, unpredictable supplier performance and limited visibility across teams, often on top of inaccurate forecasts and siloed planning. Without a connected planning system, capacity decisions become reactive instead of planned.

How does production planning software compare with spreadsheets?

Software weighs cost, capacity and deadlines together across every line, plant and shift, spreads the workload where there is room, tests what-if scenarios before you decide and compares many possible plans to find the best one. Spreadsheets stop scaling once product lines and plants multiply.

How is production planning different from production scheduling?

Production planning works in weeks and months across lines and plants. Production scheduling then sets the exact sequence on each line, with changeovers and shifts.

Does it include material requirements?

Yes. Component and raw material needs follow from the plan and feed procurement planning, so purchasing matches what you will make and runs don’t stop for missing materials.

How fast can we start?

Start with Horizon Instant: demand planning on your own data, up and running in less than 24 hours. The supply modules then build on the same data model.

See the optimal production plan on your own data.

Start with Horizon Instant: demand planning on your own data, up and running in less than 24 hours.

Start with Horizon InstantBook a demo