Master Production Schedules (MPS)
On the completion of this section, the learner should be able to:
• Indentify the main inputs into MPS
• Calculate the MPS including:
 Projected on hand inventory
 Master Schedule quantity
 Available to Promise
Master Production Schedule
Master Production Schedule is one of the most important planning and scheduling tools in many
organizations and form the main input to many Materials Requirements Planning (MRP).
Customer
Orders
Bills of
Materials
Purchase
orders
Master
Production
Schedule
Materials
Requirements
Planning
(MRP).
Materials
Plans
Demand
Forecast
Inventory
Records
Works
Orders
Master Production Schedule contains a statement of the volume and timing of the end products to
be made. This schedule drives the whole operation in terms of what is assembled; what is
manufactured and what is bought. It is the basis of planning the utilization of labour and
equipment and determines the provisioning of materials and cash.
Inputs into the Master Production Schedule (MPS)
Known
Orders
Key
Capacity
Constraints
Demand
Forecast
Sister
Plant
Demand
Inventory
Levels
Master
Production
Schedule
(MPS)
R&D
Demand
Spares
Demand
Exhibition/
Promotion
Requirement
s
Safety Stock
Requirements
The Master Production Schedule (MPS) is time phased records of each end product which contains
a statement of demand and currently available stock of each finished item. Using this information,
the available inventory is projected ahead in time. When there is insufficient stock to satisfy
forward demand, order quantities are entered on the master schedule line.
Calculating the Master Production Schedule (MPS)
JUNE
JULY
1
2
3
4
5
6
7
8
Forecast
30
30
30
30
40
60
65
55
Customer Orders
(Committed)
20
20
10
4
2
Projected on-hand
Inventory
MPS
Available to Promise
•
•
Beginning Inventory =
Batch Size
=
14 units
20 units
Exercise 2
Siyabonga Textiles, a manufacturer of women’s garments has compiled the following sales forecast
for the months of June and July 2011:
June 2011
1
2
3
4
5
6
Forecast Units
4900
4500
5750
6200
4550
4985
Customer Orders
(Committed)
4100
4200
3750
2460
2155
1450
July 2011
7
8
9
5280
6560
7750
Projected on-hand
Inventory
MPS
Available to Promise
The opening inventory for this period was 850 units and the factory cab only produce batches of
1200 units. Calculate:
4.1.1 Projected on hand inventory
(4)
4.1.2 Master Production Schedule
(4)
4.1.3 Available to Promise (ATP)
(3)
Exercise 3
Siyafunda Fashion, a manufacturer of women’s garments has compiled the following sales forecast
for the months of June and July 2011:
June 2011
1
2
3
4
5
6
Forecast Units
4500
5500
5750
6100
4200
4800
Customer Orders
(Committed)
3100
4500
3750
2460
2155
1450
July 2011
7
8
9
5270
6560
5850
Projected on-hand
Inventory
MPS
Available to Promise
The opening inventory for this period was 850 units and the factory cab only produce batches of
1200 units. Calculate:
3.3.1 Projected on hand inventory
(4)
3.3.2 Master Production Schedule
(4)
3.3.3 Available to Promise (ATP)
(4)