By using many variables as inputs the MPS will generate a set of outputs used for
decision making. Inputs may include forecast demand,
production costs,
inventory money, customer needs, inventory progress, supply, lot size, production lead time, and capacity. Inputs may be automatically generated by an
ERP system that links a
sales department with a production department. For instance, when the sales department records a sale, the forecast demand may be automatically shifted to meet the new demand. Inputs may also be inputted manually from forecasts that have also been calculated manually. Outputs may include amounts to be produced, staffing levels, quantity available to promise, and projected available balance. Outputs may be used to create a
Material Requirements Planning (MRP) schedule. A master production schedule may be necessary for organizations to synchronize their operations and become more
efficient. An effective MPS ultimately will: • Give production, planning, purchasing, and management the information to plan and control manufacturing • Tie overall business planning and forecasting to detail operations • Enable marketing to make legitimate delivery commitments to
warehouses and customers • Increase the efficiency and accuracy of a company's manufacturing • Rough cut capacity planning MPS issues: • Width of the
time bucket •
Planning horizon •
Rolling plan •
Time fencing •
Schedule freezing == Production plan ==