Use of Master Production Schedule:
• Master Production Schedule or MPS is the
plan that a company has developed for
production, inventory , staffing, etc.
• MPS Inputs would be forecast demand,
inventory cost, customer order and inventory
level.
• MPS outputs projected available balance,
quantity available to promise and amount to
order
Use of Master Production Schedule:
Wal-Mart
• They use a system which is called a Perpetual
inventory
• This is a keeping book inventory continuously
in agreement with stock on hand within
specified time periods.
• Wal-Mart is doing this process on a
computer.
• Sometimes also called continuous inventory
Use of Material Requirement Planning:
Wal-Mart
• By having a system in play like Perpetual
Inventory
– They are able to keep items instock.
– When a item reaches a certain number from the
register, it place an order for that product.
• Product is also dictated by the main company
Use of Material Requirement
Planning: Wal-Mart
• Benefits would reduce shortages ( until bad
weather came, which make customer come
out to get more), Improves customer service
by always keeping product on the shelf,
reduces freight cost, reduces over time and
reduces product cost and purchasing.