> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/use-cases/manufacturing-and-production/multi-plant-consolidated-forecasting.md).

# Multi-Plant Consolidated Forecasting

This use case explains how to forecast across multiple plants, factories or production sites in Model Reef and consolidate results at group level.

You will:

* Represent each plant as its own branch.
* Attach revenue, cost, capacity and inventory structures to each plant.
* Add central overheads and group level financing.
* Produce plant level and consolidated forecasts for P\&L, Balance Sheet, Cashflow and Cash Waterfall.

This pattern extends plant level models built using **BOM and Unit Cost Modelling**, **Capacity and Production Planning** and **Inventory Turnover and Working Capital** to a multi plant environment.

## When to use this pattern

Use this pattern when:

* You operate more than one manufacturing or production site.
* You want clear visibility of performance per plant as well as group level.
* You need to plan transfers of production, investment or closure across plants.
* You use a mix of in house plants and contract manufacturers and want them in one view.

It is also useful for contract manufacturing arrangements where some production is internal and some external.

## Architecture overview

The multi plant structure uses:

* Branch tree
  * One branch per plant, plus grouping branches if needed.
  * A group branch for consolidated results.
  * Optional branches for contract manufacturers and central overheads.
* Plant level models
  * Revenue, unit cost, capacity and inventory structures per plant.
  * Plant specific staffing and Opex.
* Group level structures
  * Central overheads, shared assets and group debt.
  * Equity injections, dividends and other group actions.
* Outputs
  * Plant level P\&L and cash views.
  * Consolidated forecasts and dashboards.
  * Scenario comparisons for alternative network strategies.

{% stepper %}
{% step %}

### Set up branches for each plant

In the branch tree, create a structure such as:

* `Group`
  * `Plant - North`
  * `Plant - South`
  * `Plant - Contract Manufacturer`
  * `Central Overheads`

If you have many plants, you can group them under regional branches, for example `Region - EU`, `Region - US`, etc.

Each plant branch holds that plant’s revenue, cost, capacity and inventory variables. The group branch is used only for consolidation and group level items.
{% endstep %}

{% step %}

### Implement plant level revenue and unit cost structures

Within each plant branch:

* Implement BOM and unit cost structures for the SKUs or product families that plant produces.
* Define production volumes per SKU and period.
* Create revenue variables based on volumes and selling prices (which may be set centrally or per region).

Ensure that:

* Product naming is consistent across plants.
* Categories and subcategories are the same for all plants.
* Drivers such as selling price and unit cost are reused where appropriate via the Data Library.

This consistency allows reports and dashboards to aggregate meaningfully.
{% endstep %}

{% step %}

### Attach capacity and production planning per plant

For each plant branch, include capacity and production drivers such as:

* Hours available per period (shifts, days, planned maintenance).
* Throughput per line and product.
* Efficiency or OEE modifiers.
* Production volumes per product.

Use the **Capacity and Production Planning** pattern so that for each plant you can see:

* Required hours.
* Utilisation percentage.
* Bottlenecks and unused capacity.

This allows you to:

* Check whether the proposed production plan per plant is feasible.
* Compare utilisation and headroom across plants.
* Evaluate moving production from one plant to another in scenarios.
  {% endstep %}

{% step %}

### Model inventory and working capital per plant

Use the **Inventory Turnover and Working Capital** pattern to approximate:

* Raw materials, WIP and finished goods per plant.
* Inventory days on hand and turns for each plant.
* Working capital tied up in stock across the network.

Implement this by:

* Creating Asset type variables such as `Inventory - Raw Materials - Plant North`, `Inventory - Finished Goods - Plant South`.
* Driving inventory levels from COGS and policy drivers like days on hand or turns.
* Letting the model compute changes in inventory so the Cashflow Statement and Cash Waterfall reflect working capital movements.

If inter plant transfers are material, you can represent them as:

* Additional COGS or internal revenue lines, or
* Reclassification entries between plants.

Keep in mind Model Reef is a planning engine, so keep intercompany logic simple and aligned with decision needs.
{% endstep %}

{% step %}

### Add central overheads and group financing

Create a `Central Overheads` or similar branch with variables for:

* Group level staff costs (executive, central finance, HR, IT).
* Central marketing and brand spend.
* Group wide systems and licences.
* Shared services.

At the group branch, add variables for:

* Group debt and interest.
* Equity injections or shareholder distributions.
* Shared assets not tied to a specific plant (for example HQ building).

These structures:

* Keep plant branches focused on operational performance.
* Keep group branch focused on capital structure, central overheads and investor facing metrics.
  {% endstep %}

{% step %}

### Build plant and group reporting

Use reports and dashboards to provide:

Plant level views

* P\&L per plant, including revenue, COGS and gross margin.
* Opex and staff cost per plant.
* Plant level Cashflow Statement and Cash Waterfall.
* Capacity and utilisation charts per plant.

Group level views

* Consolidated P\&L across all plants plus central overheads.
* Consolidated Balance Sheet, including plant inventories and group debt.
* Consolidated Cashflow Statement and Cash Waterfall.
* Margin and working capital analysis by plant and in total.

You can add views such as:

* Revenue, COGS and gross margin by plant.
* Contribution per plant after allocated or unallocated overheads.
* Inventory and working capital by plant and in aggregate.
  {% endstep %}

{% step %}

### Use scenarios for network strategy

Clone the multi plant model into separate models to test network strategies, such as:

* Opening a new plant.
* Closing or downsizing a plant.
* Shifting specific products from one plant to another.
* Moving some production to contract manufacturers.
* Investing in additional capacity or automation.

For each scenario, adjust:

* Branch structure (for example adding or removing plant branches).
* Capacity, unit cost and production drivers per plant.
* Central overheads and group financing assumptions.
* Inventory policy and lead times per plant.

Compare scenarios on:

* Group level P\&L and cashflow.
* Plant level margins and utilisation.
* Required capex and associated depreciation.
* Payback and valuation, using the Valuation Engine.
  {% endstep %}
  {% endstepper %}

## Check your work

* Each plant branch contains only variables that truly belong to that plant.
* Central costs and financing are separated from plant cost structures and clearly visible.
* Consolidated results at the group branch reconcile to the sum of plants plus central overheads.
* Capacity, margin and cash patterns are believable to both operations and finance stakeholders.

## Troubleshooting

<details>

<summary>Plants look much more or less profitable than actuals</summary>

Check that revenue, cost and overhead allocations align with your accounting view, and calibrate plant level assumptions using latest actuals.

</details>

<details>

<summary>Inventory or working capital appears double counted</summary>

Ensure you model inventory at one level per plant and avoid representing the same stock in multiple branches or variables.

</details>

<details>

<summary>The model feels unwieldy with many plants and SKUs</summary>

Group smaller plants or product families into aggregate buckets and reserve detailed modelling for the largest or most strategic ones.

</details>

## Related guides

* [Build a Consolidated Forecast Model](/how-tos/core-modelling/build-a-consolidated-forecast-model.md)
* [Build a Multi Division Model](/how-tos/core-modelling/build-a-multi-division-model.md)
* [Data Library Mapping](/help/xero-integration/data-library-mapping.md)
* [How to Enter Values](/syntax/how-input-fields-work/how-to-enter-values.md)