Master planning is at the heart of supply chain execution in Dynamics 365 Supply Chain Management. Whether you’re managing manufacturing, distribution, or retail operations, the planning engine ensures materials, capacity, and timelines stay aligned with demand.
For years, Dynamics 365 (and earlier AX versions) relied on the idea of static and dynamic master plans — and with the introduction of Planning Optimization, many users have wondered:
“Do we still need static and dynamic plans?”
“What purpose do they serve today?”
The short answer: Yes they’re still important.
Planning Optimization changes how planning is executed, but it does not eliminate the conceptual or functional need for static and dynamic plans.
This post breaks down what they are, how they differ, and how companies use them in real‑world scenarios.
What is a static master plan?
A static master plan is your organization’s official, stable, and controlled plan.
Think of it as the blueprint for execution — it is the version of the plan that purchasing, production, and scheduling teams rely on.
Key characteristics
- Generated by running master planning on the chosen master plan.
- Does not change automatically when new data comes in.
- Updated only when you intentionally rerun planning.
- Considered the trusted snapshot that drives operational decisions.
Typical use cases
- Nightly or scheduled planning runs.
- Providing consistent visibility for buyers and production planners.
- Preventing unnecessary churn in planned purchase and production order
Why static plans matter
A supply chain cannot function if the plan changes every five minutes.
The static plan gives everyone a stable point of reference — minimizing noise and helping teams stay coordinated.
What is a Dynamic Master Plan?
A dynamic master plan is a continuously updated, real‑time scenario plan.
It begins identical to the static plan, but unlike the static plan, it reacts to changes immediately.
Key characteristics
- Reflects new sales orders, inventory adjustments, forecasts, and BOM changes.
- Intended for what‑if analysis.
- Used by planners and customer service teams to make fast decisions.
Typical use cases
- Checking whether you can fulfill a newly entered sales order.
- Assessing the impact of urgent changes to supply or demand.
- Running simulations without disturbing the “official” plan.
Why dynamic plans matter
They enable agile decision‑making.
Where the static plan prevents chaos, the dynamic plan empowers responsiveness.
What about planning optimization?
With the migration to Planning Optimization, all MRP processing now occurs outside the Dynamics 365 SQL database, producing:
- Faster planning runs
- More frequent scheduling
- Better system performance
- Support for near‑real‑time rescheduling
But here’s the important part:
Static and dynamic plans continue to be fully supported and fully relevant.
Planning Optimization changes how planning runs — not the purpose of the plans themselves.
In fact, with faster MRP cycles, many companies use the static plan more frequently while still relying on the dynamic plan for daily what‑if analysis.
Which Plan Should You Use – and When?
Use the Static Plan When…
- You need a stable, controlled plan for execution.
- You run planning nightly or on a predictable cadence.
- Purchasing and production teams need consistency.
- You want stable planned order numbers for downstream processes.
Use the Dynamic Plan When…
- Customer service needs to promise dates based on current conditions.
- Planners want visibility into the immediate effect of new demand.
- You need to simulate fast changes without rerunning static MRP.
- You are validating short‑term scenarios in real time.
Best Practice Setup
Most organizations use a setup like this:
- Static Plan: MASTER – Run nightly at a scheduled time.
- Dynamic Plan: DYN – Set to auto-update based on transaction activity.
A typical workflow looks like this:
- Planners monitor changes in the dynamic plan during the day.
- Operations execute against the static plan, which remains stable.
- A nightly master planning run refreshes the static plan for the next day.
This pattern balances stability with flexibility — the best of both worlds.
Final Thoughts
Even in the era of Planning Optimization, static and dynamic master plans retain their value. They solve different but complementary needs:
Static = stability, control, and execution Dynamic = agility, visibility, and simulation
Together, they help organizations run reliable and responsive supply chains — exactly what modern businesses require.