Planning horizon and planning time fence

What is the meaning of terms
- planning horizon.
- planning time fence.
Where and how we can use these terms?
Kindly explain with a example.

Hi,
1. planning horizon
Net change planning in the system only plans materials that have undergone a change that is relevant to the planning run within the period which you defined as the planning horizon. The system sets the net change planning horizon indicator automatically for these materials.
In net change planning in the planning horizon, the system only plans those materials provided with the net change planning horizon indicator.
2. planning time fence
The planning time fence dictates a firm period for planning purposes. Subsequent MRP runs will not create planned orders within the time fence but will place them just outside it. Orders must be manually moved forward if desired. The idea is to create a short term period of plan stability.Check the MRP tabs on the Material Master for the planning time fence
period for the material.
Regards,
Sankaran

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