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Plan production - internal and with suppliers?

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Posted on by MS-11050747-0

We receive monthly updates from our suppliers regarding their planned production going forward, and we want to be able to reflect and align with this plan in our system.

The same applies to our internal production, where we will have an estimated production volume per month. However, this will also need to be adjusted on a monthly basis to ensure that the information in the system remains accurate and up to date.

Given this, how should this type of planning and update process be handled in Business Central? What would be considered the recommended or best-practice approach for managing and continuously updating both supplier forecasts and internal production plans?

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Dynamics 365 Business Central

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YUN ZHU 102,590 Super User 2026 Season 1 on at

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Hi, hope the following can give you some hints.

Production Planning & MRP in Dynamics 365 Business Central: A Practical Guide for Manufacturers

https://msdynamicsworld.com/blog/production-planning-mrp-dynamics-365-business-central-practical-guide-manufacturers

Thanks.

ZHU

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Alex A 3,163 Super User 2026 Season 1 on at

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Are you currently using Blanket Sales orders to help track the suppliers production plan and delivery schedules?

If this helps please mark the answer.

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OussamaSabbouh 18,486 Super User 2026 Season 1 on at

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Hello,

Recommended approach is to maintain the monthly supplier/internal expectations as Demand Forecasts in Business Central, then rerun the Planning Worksheet / MPS / MRP after each monthly update so BC can suggest the needed purchase orders, production orders, transfers, or rescheduling. Use sales forecasts for expected customer demand, production forecasts for expected internal production/component demand, and update the forecast quantities by item/period each month rather than manually changing many orders. For supplier planned production, if it represents expected supply/commitment from the vendor, you can also use blanket purchase orders or planned purchase orders, but keep the forecast/planning worksheet as the main planning process. Business Central nets forecasts against actual demand and uses planning to balance supply and demand.

Regards,
Oussama Sabbouh

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Mansi Soni 10,246 Super User 2026 Season 1 on at

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Hello @MS-11050747-0,
In Business Central, supplier forecasts and expected demand should be managed using Demand Forecasts, which can be updated on a rolling monthly basis. Instead of overwriting data, forecasts should be time-phased or versioned to maintain accuracy and traceability over time.

For internal production, use Production Forecasts along with planning tools like MPS/MRP and planning worksheets. After each monthly update, run the planning worksheet to automatically adjust purchase and production orders, ensuring supply stays aligned with the latest demand and production plans.

Hope this answer helps you!

If this answer helps you, kindly Mark it as verified answer!

Regards,
Mansi Soni

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Jainam M. Kothari 17,045 Super User 2026 Season 1 on at

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Hello,

The recommended Business Central approach is to manage both supplier forecasts and internal production plans through a rolling 12-month planning process, where forecasts are updated monthly and used as inputs to the planning engine rather than creating orders directly.

Internal production volumes should be maintained using Demand Forecasts and processed through MPS/MRP and the Planning Worksheet to generate production and purchasing recommendations.

Supplier-provided production or supply forecasts should be stored in a dedicated Supplier Forecast worksheet or custom forecast table (since standard Business Central does not provide vendor forecasting functionality), with monthly imports and version control to track revisions.

This approach enables continuous alignment between demand, supplier commitments, production capacity, inventory levels, and procurement planning while maintaining forecast history and supporting variance analysis between forecasted and actual performance.

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Grigorios Mavrogeorgis 2,864 Super User 2026 Season 1 on at

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Hi,

what you describe sounds like a job for the Demand Forecast plus blanket orders, not manual order entry every month. For your own estimated production volume, the Demand Forecast is the natural place, you put the monthly quantities per item there, then planning reads it as expected demand and suggests supply against it. You reload or adjust the forecast each month and rerun the worksheet, that is the continuous update loop you are after.

For the supplier planned production going forward, blanket purchase orders fit well, you agree the monthly quantities as blanket lines and release them to actual orders as the dates come close. That way the future plan is visible to planning but not yet a firm receipt.

One thing that bites people, forecast consumption depends on the forecast being set against the right location and the period matching how you run planning, otherwise it double counts with real sales orders. So watch the location and the forecast type.
Are these items purchased, manufactured, or both, and do you run regular or just plan from the planning worksheet?

Glad to help - follow up if anything is unclear.
► If this solved it, marking it verified helps others too.
Regards,
Grigorios Mavrogeorgis
Business Central Consultant & AL Developer
Work: Gmsoft Limited
Blog: insidebusinesscentral
LinkedIn: linkedin.com/in/gregorymavrogeorgis

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Gerardo Rentería Ga... 27,545 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Production Planning & MRP in Dynamics 365 Business Central: A Practical Guide for Manufacturers | MSDynamicsWorld.com

https://www.youtube.com/watch?v=lsIeBxkdpy0

Detailed Production Planning including MRP - Dynamics 365 Business Central

Best Regards
Gerardo

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