1. Master Production Scheduling
Supplement F
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2. MPS Process
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3. Authorized production plan
MPS Process
Authorized production plan
Figure F.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

4. Authorized production plan Prospective master production schedule
MPS Process
Authorized production plan
Prospective master production schedule
Figure F.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

5. MPS Process Are resources available? Authorized production plan
Prospective master production schedule
Figure F.1
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6. MPS Process No Are resources available? Authorized production plan
Prospective master production schedule
Figure F.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

7. MPS Process No Yes Are resources available? Authorized production plan
Prospective master production schedule
Authorized master production schedule
Figure F.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

8. MPS Process No Yes Are resources available? Authorized production plan
Prospective master production schedule
Material requirements planning
Authorized master production schedule
Figure F.1
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9. Developing an MPS
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10. Developing an MPS MPS quantity (0 for week 1) Inventory = + – =
55 chairs currently in stock
38 chairs already promised for delivery in week 1
17 chairs
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11. Developing an MPS 1 2 30 30 38 27 MPS quantity (0 for week 1)
Item: Ladder-back chair
MPS start
MPS quantity
Projected on-hand
Inventory
Customer orders
(booked)
Forecast
Quantity
On Hand:
April 55
1 2
30 30
38 27
MPS quantity (0 for week 1)
Inventory = – =
55 chairs currently in stock
38 chairs already promised for delivery in week 1
17 chairs
Figure F.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

12. Developing an MPS 1 2 30 30 38 27 17 MPS quantity (0 for week 1)
Explanation:
Forecast is less than booked orders in week 1; projected on-hand inventory
balance = – 38 = 17.
Item: Ladder-back chair
MPS start
MPS quantity
Projected on-hand
Inventory
Customer orders
(booked)
Forecast
Quantity
On Hand:
April 55
1 2
30 30
38 27 17
MPS quantity (0 for week 1)
Inventory = – =
55 chairs currently in stock
38 chairs already promised for delivery in week 1
17 chairs
Figure F.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

13. Developing an MPS
Item: Ladder-back chair
MPS start
MPS quantity
Projected on-hand
Inventory
Customer orders
(booked)
Forecast
Quantity
On Hand:
April 55
1 2
30 30
38 27
17 -13
0 0
MPS quantity (0 for week 1)
Inventory = – =
55 chairs currently in stock
38 chairs already promised for delivery in week 1
17 chairs
Figure F.2
Explanation:
Forecast is less than booked orders in week 1; projected on-hand inventory
balance = – 38 = 17.
Explanation:
Forecast exceeds booked orders in week 2; projected on-hand inventory balance = – 30 = –13. The shortage signals a need to schedule an MPS quantity for completion in week 2.
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

14. Master Production Schedule
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15. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
MPS quantity
MPS start
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

16. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
MPS quantity
150
MPS start
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

17. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
Explanation:
On-hand inventory balance
= – 30 = 137. The
MPS quantity is needed to avoid a shortage of 30 – 17 = 13 chairs in week 2.
MPS quantity
150
MPS start
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

18. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
Explanation:
The time needed to assemble 150 chairs is one week. The assembly department must start assembling chairs in week 1 to have them ready by week 2.
MPS quantity
150
MPS start
150
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

19. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107
MPS quantity
150
MPS start
150
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

20. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77
MPS quantity
150
MPS start
150
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

21. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42
MPS quantity
150
MPS start
150
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

22. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42 7
MPS quantity
150
MPS start
150
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

23. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42 7
122
MPS quantity
150
150
MPS start
150
150
Figure F.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

24. Master Production Schedule
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42 7
122 87
MPS quantity
150
150
MPS start
150
150
Figure F.3
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25. Available to Promise
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26. Available to Promise Item: Ladder-back chair April May 55 Figure F.4
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42 7
122 87
MPS quantity
150
150
MPS start
150
150
Available-to-promise (ATP) inventory
Figure F.4
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

27. Available to Promise Item: Ladder-back chair April May 55 Explanation:
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42 7
122 87
Explanation:
The total of customer orders booked until the next MPS receipt is 38 units. The ATP = 55 (on-hand) + 0 (MPS quantity) – 38 = 17.
MPS quantity
150
150
MPS start
150
150
Available-to-promise (ATP) inventory 17
Figure F.4
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

28. Available to Promise Item: Ladder-back chair April May 55 Explanation:
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42 7
122 87
MPS quantity
150
Explanation:
The total of customer orders booked until the next MPS receipt is = 59 units. The ATP = 150 (MPS quantity) – 59 = 91 units.
150
MPS start
150
150
Available-to-promise (ATP) inventory 17 91
Figure F.4
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.

29. Available to Promise Item: Ladder-back chair April May 55 Figure F.4
Order Policy: 150 units
Lead Time: 1 week
Item: Ladder-back chair
April May
Quantity on Hand: 55 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer orders (booked) 38 27 24 8
Projected on-hand inventory 17
137
107 77 42 7
122 87
MPS quantity
150
150
MPS start
150
150
Available-to-promise (ATP) inventory 17 91
150
Figure F.4
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30. Freezing the MPS
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31. Freezing the MPS
Week
MPS quantity
Figure F.5
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32. Freezing the MPS
Week
MPS quantity
Demand time fence
Figure F.5
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33. Freezing the MPS
Week
MPS quantity
Demand time fence
Planning time fence
Figure F.5
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34. Solved Problem
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35. Solved Problem Item: A Week 5 Figure F.6 Order Policy: 50 units
Lead Time: 1 week
Forecast
Customer orders (booked)
Projected on-hand inventory
MPS quantity
MPS start
Week
Quantity on Hand: 5
Available-to-promise (ATP) inventory 1 30 10 2 20 40 3 4 8 6 7 25 50
Figure F.6
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36. Solved Problem Figure F.7
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