MPS is a vital link in production planning system that:
- forms link between production planning and what will actually build.
- forms basics calculating capacity and resources needed.
- drive material requirements plan.
- keeps priorities valid. It also a priority plan for manufacturing.
The information that needed to develop this MPS is:
1) production plan
2) forecasts for individual end items
3) actual orders received from customers and for stock replenishment
4) Inventory levels for individual end items
5) capacity restraints
The objectives in developing an MPS are:
- to maintain desired level of customer service by maintaining finished goods inventory level or scheduling to meet customer delivery requirement
- to make the best use of material, labor, and equipment
- to maintain inventory investment at the required level
PROBLEMS
1)
Opening Inventory = 50 Dozen
Lot Size = 100 Dozen
|
Week
|
1
|
2
|
3
|
4
|
5
|
6
|
Total
|
|
Forecast
|
75
|
50
|
30
|
40
|
70
|
20
|
285
|
|
PAB 50
(Ending Inventory)
|
75
|
25
|
95
|
55
|
85
|
65
|
400
|
|
MPS (Production)
|
100
|
-
|
100
|
-
|
100
|
-
|
300
|
Ending Inventory = Opening Inventory + Production - demand
1 = 50 + 100 - 75 = 75
2 = 75 + 100 - 50 = 125 - 100 = 25
3 = 25 + 100 - 30 = 95
4 = 95 + 100 - 40 = 155 -100 = 55
5 = 55 + 100 - 70 = 85
6 = 85 + 100 - 20 = 165 -100 = 65
2)
Opening Inventory = 500 Units
Ending Inventory = 300 Units
Production Leveled = 250 per week
|
Week
|
1
|
2
|
3
|
4
|
Total
|
|
Forecast
|
300
|
350
|
300
|
250
|
1200
|
|
PAB
500
|
450
|
350
|
300
|
300
|
1400
|
|
Production Plan
|
250
|
250
|
250
|
250
|
1000
|
PAB = Opening Inventory + Production - Forecast Demand
1 = 500 + 250 - 300 = 450
2 = 450 + 250 - 350 = 350
3 = 350 + 250 - 300 = 300
4 = 300 + 250 - 250 = 300
|
Week
|
1
|
2
|
3
|
4
|
Total
|
|
Forecast
|
200
|
300
|
100
|
100
|
700
|
|
PAB
200
|
250
|
200
|
100
|
250
|
800
|
|
MPS
|
250
|
250
|
-
|
250
|
750
|
PAB = Opening Inventory + Production - Forecast Demand
1 = 200 + 250 - 200 = 250
2 = 250 + 250 - 300 = 200
3 = 200 + 250 - 100 = 350 - 250 = 100
4 = 100 + 250 - 100 = 250
|
Week
|
1
|
2
|
3
|
4
|
Total
|
|
Forecast
|
100
|
50
|
200
|
150
|
500
|
|
PAB
300
|
200
|
150
|
200
|
50
|
600
|
|
MPS
|
-
|
-
|
250
|
-
|
250
|
PAB = Opening Inventory + Production - Forecast Demand
1 = 300 + 250 - 100 = 450 - 250 = 200
2 = 200 + 250 - 50 = 400 - 250 = 150
3 = 150 + 250 - 200 = 200
4 = 200 + 250 - 150 = 300 - 250 = 50
3)
Opening Inventory = 270 Units
Ending Inventory = 150 Units
Production
|
Quarter
|
1
|
2
|
3
|
4
|
Total
|
|
Forecast Sales
|
220
|
300
|
200
|
200
|
920
|
|
PAB
270
|
250
|
150
|
150
|
150
|
700
|
|
Production Plan
|
200
|
200
|
200
|
200
|
800
|
Total Production = ∑ Forecast Demand + Ending Inventory - Opening Inventory
= 920 + 150 - 270 = 800 Units
Average Total Production = 800 / 4 = 200 Units
PAB = Opening Inventory + Production - Forecast Demand
1 = 270 + 200 - 220 = 250
2 = 250 + 200 - 300 = 150
3 = 150 + 200 - 200 = 150
4 = 150 + 200 - 200 = 150
Mail Box A. Lot size = 200
|
Quarter
|
1
|
2
|
3
|
4
|
Total
|
|
Forecast Sales
|
120
|
180
|
100
|
120
|
520
|
|
PAB
120
|
0
|
20
|
120
|
0
|
140
|
|
Production Plan
|
-
|
200
|
200
|
-
|
400
|
PAB = Opening Inventory + Production - Forecast Demand
1 = 120 + 200 - 120 = 200 -200 = 0
2 = 0 + 200 - 180 = 20
3 = 20 + 200 - 100 = 120
4 = 120 + 200 -120 = 200 - 200 = 0
Mail Box B. Lot Size = 200
|
Quarter
|
1
|
2
|
3
|
4
|
Total
|
|
Forecast Sales
|
100
|
120
|
100
|
80
|
400
|
|
PAB
150
|
250
|
130
|
30
|
150
|
560
|
|
Production Plan
|
200
|
-
|
-
|
200
|
400
|
PAB = Opening Inventory + Production - Forecast Demand
1 = 150 + 200 - 100 = 250
2 = 250 + 200 - 120 = 330 - 200 = 130
3 = 130 + 200 - 100 = 230 - 200 = 30
4 = 30 + 200 - 80 = 150
