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Overview
What is MPS?
Master Production Schedule
States the requirements for
individual end items by date and
quantity. -APICS
MPS Explained
Breaks down, or disaggregates,
the production plan into product
families
Promotes valid order promises
Provides a communication
medium between
Marketing/Sales and Operations
Explanation Continued
Proactively control ability to
deliver goods to customers
Resource availability control
Proactively control inventory
levels
Marketing Operations
Marketing communicates
demand through customer
orders and forecasts
Operations communicates
capacity through inventory
levels and constraints
Resource Availability
Control
Production shortfalls will be
known ahead of time and
alternative plans can be made.
Customer Service
Proactively control ability to
deliver goods to customers
Inventory Control
Proactive approach to inventory
control
Planning Organization
S a le s a n d O p e r a tio n s P la n
R e s o u r c e P la n n in g
M a s t e r P r o d u c t i o n S c h e d u le
R o u g h C u t C a p a c ity P la n n in g
M a t e r ia ls R e s o u r c e p la n n in g
C a p a c it y R e q u ir e m e n t s P la n
S h o p F lo o r C o n t r o l
In p u t/O u tp u t
Lot Size
Lead Time
Product Demand
Starting Inventory
Demand
30
30
30
30
30
Available
20
15
10
MPS
50
25
25
25
25
MRP
Capacity Planning
Shop floor control
MPS
Inventory Management
Example Continued
Brainstorming Exercise
How can an MPS system be
used in your Firm?
W Inc. Continued
Period
Demand
25
25
25
15
35
25
Available
MPS
50
Summary
MPS breaks the Sales &
Operations plan into product
families
Maintains Desired Level of
Customer Service
Allows proactive control of
inventory
Bibliography
Sources:
Cox III, James F., and Blackstone Jr., John H.,
eds. APICS Dictionary. 1998
Vollman, Thomas E., William L. Berry, D. Clay
Whybark, (1997) Manufacturing Planning and
Control Systems (4th ed.). New York McGrawHill
APICS. (2000). Basics of Supply Chain
Management. Virginia.