What is the primary goal of master planning of resources in a supply chain?

The primary goal of master planning of resources in a supply chain is to balance supply and demand effectively. This process involves creating a plan that aligns the production and inventory levels with expected customer demand. By ensuring that supply meets demand, companies can avoid situations such as stockouts, which can lead to lost sales, or excess inventory, which can increase holding costs.

Effective master planning helps organizations anticipate fluctuations in demand and adjust their supply chain activities accordingly, resulting in improved operational efficiency. This balance is crucial for maintaining steady production schedules, optimizing resource utilization, and ultimately achieving customer satisfaction. By focusing on this balance, organizations can provide reliable service levels while managing costs effectively, which indirectly supports other goals such as enhancing customer service levels and minimizing costs. However, the core focus remains on achieving that equilibrium between supply and demand, which is fundamental to successful supply chain management.