Constraint Categories

Constrait Categories

Appendix A

Question: What are supply planning constraints?

Response: ‘’’ Supply planning constraints are the real-world limitations and business rules that must be respected when creating feasible and optimized supply plans. These constraints ensure that the resulting plan is practical, executable, and aligned with company goals.

📦 Common Categories of Supply Planning Constraints:

1. Capacity Constraints
   1. Production capacity: Max output per time period per resource.
   2. Storage capacity: Limits on inventory at warehouses or distribution centers.
   3. Transportation capacity: Limits on truck/container availability or shipping volume.
2. Material Constraints
   1. Availability of components or raw materials.
   2. Lead times for procurement and delivery.
3. Inventory Constraints
   1. Minimum/maximum inventory levels.
   2. Safety stock requirements.
   3. Shelf-life or expiry dates (for perishables).
4. Demand Fulfillment Constraints
   1. Customer service levels (fill rate, OTIF).
   2. Order prioritization or allocation rules.
5. Scheduling Constraints
   1. Setup/changeover times and costs.
   2. Shift patterns, working hours, or maintenance windows.
6. Financial Constraints
   1. Budget limits for production, procurement, or logistics.
   2. Cost minimization or profit maximization objectives.
7. Policy Constraints
   1. Make-to-order vs. make-to-stock policies.
   2. Fixed production lot sizes.
   3. Supplier contracts (e.g., MOQ, quotas). ‘’’