Constraint-based planning allows companies to balance materials and capacities simultaneously across the entire supply chain. If a capacity is constrained, such as a factory that can’t produce more than 5,000 products in a day, only enough parts will be ordered to match the factory’s daily output. Downstream partners will then know how many products in a day to expect from that specific facility for planning distribution and transportation resources. Of course, real-world applications are much more complex, but constraint-based planning allows a holistic view of potential planning and scheduling decision impacts across the supply chain.

Key benefits of Constraint-based Planning
Improved efficiency and profitability
Constraint-based planning optimizes resource allocation, production schedules, and reduces inventory costs, leading to enhanced efficiency and reduced costs throughout the supply chain.

Proactive planning and higher agility
Constraint-based planning provides greater visibility into supply chain processes, allowing organizations to identify potential bottlenecks, risks, and opportunities to take proactive, corrective actions as needed.