() is a crucial tool in supply chain management. It specifies the quantity and timing of end items produced, bridging the gap between and detailed scheduling while coordinating production, sales, and inventory management.
MPS development involves gathering input data, determining , and calculating requirements. The process considers , inventory costs, and . Impact analysis of MPS changes helps managers understand the effects of demand or capacity fluctuations on production schedules.
Understanding Master Production Scheduling
Role of master production scheduling
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Master Production Scheduling (MPS) specifies quantity and timing of end items produced over several weeks to months
Bridges gap between aggregate planning and detailed scheduling serves as basis for ()
Coordinates production, sales, and inventory management balances supply and demand
Provides basis for guides lower-level production and purchasing activities
Inputs and outputs of MPS
Inputs: demand forecasts (customer orders, sales projections), production capacity, inventory levels, aggregate production plan, product structure (bill of materials)
Outputs: planned production quantities for each end item, production schedule by time periods (weekly), () quantities, ()
Developing and Analyzing the Master Production Schedule
Development of production schedules
Gather input data (forecasts, orders, inventory levels)
Determine time buckets (weekly)
Calculate gross requirements
Adjust for inventory on hand and scheduled receipts
Calculate net requirements
Determine and
Schedule production quantities
Consider capacity constraints, , , customer service levels
Implement , ,
Impact analysis of MPS changes
Demand increase may require overtime, subcontracting, or backorders
Demand decrease may lead to excess inventory or idle capacity
Capacity increase creates opportunity to reduce backlogs or increase production
Capacity decrease may require rescheduling or prioritizing orders
Analyze using , what-if scenarios, ATP analysis
Measure performance with , , customer service level, capacity utilization