11 Master Scheduling CHAPTER Covers pages 493-498. Homework problems # 19,20,21,22 on page 506.

Master Scheduling The heart of production planning and control It determines the quantity needed to meet demand from all sources It interfaces with Marketing Capacity planning Production planning Distribution planning Provides senior management with the ability to determine whether the business plan and its strategic objectives will be achieved

The Master Scheduler The master scheduler’s duties: Evaluating the impact of new orders Providing delivery dates for orders Deals with problems Evaluating the impact of production or delivery delays Revising master schedule when necessary because of insufficient supplies or capacity Bring instances of insufficient capacity to the attention of relevant personnel so they can participate in resolving conflicts

Master Scheduling Process

Projected On-hand Inventory Inventory from previous week Current week’s requirements - =

Projected On-hand Inventory

Projected On-hand Inventory

Available to Promise (ATP) Concept The available to promise (ATP) is the period’s MPS quantity minus the sum of customer orders occurring before the next MPS receipt. During the first master schedule period, the ATP quantity includes the on-hand balance (inventory). The ATP quantity is only calculated for the first week and for subsequent weeks in which there is an MPS quantity.

Available to Promise (ATP) Calculation a. Concept Amount of MPS that can still use to meet new booking requests, considering current on-hand, MPSt , and COt b. First Week: ATP=current OH + MPS in first week - cumulative COt occurring before the next MPS receipt. c. Subsequent Weeks: Only for weeks when an MPS quantity arrives. ATP= MPS of the week - cumulative COt occurring before the next MPS receipt.

Available to Promise (ATP)

ATP Example Item: 3-in. gate valve Order Policy: 80 units Quantity on Hand: 45 Forecast April May 20 1 MPS quantity Customer orders (booked) 23 Projected on-hand inventory 22 2 15 ATP inventory 7 3 80 8 62 68 4 42 40 5 6

ATP Order-Acceptance Example Based on the previous slide, should the following orders be accepted? Order Amount (units) Week Requested 1 5 2 2 38 5 3 24 3 4 15 4

Updated ATP Item: 3-in. gate valve Order Policy: 80 units Quantity on Hand: 45 Forecast April May 20 1 MPS quantity Customer orders (booked) 23 Projected on-hand inventory 22 2 ATP inventory 3 80 32 50 6 4 30 40 5 38 -10 7 8