Supply planning is the process of aligning supply with demand to ensure that sufficient materials, resources, and capacities are available to meet customer requirements effectively and efficiently. It involves forecasting demand, evaluating available resources, and developing strategies to optimize the flow of materials and goods throughout the supply chain.

The primary goal of supply planning is to generate purchase requisition (PR) receipts and maintain an adequate supply of materials required for the production of finished goods, thereby ensuring seamless netting off from current inventory levels to support production requirements.

Supply planning ensures that the right products are available in the right quantities, at the right time, and in the right locations to meet customer demand while optimizing costs and resources.