1. Master Production Scheduling Logistics Workshop Asia 2004 Phnom Penh, Cambodia 10 – 14 May 2004

2. 2 Master Production Planning Brewery Distribution Centres Customers

3. 3 Production Planning

4. 4 RCCP CRP Forecasting Distribution Requirements Planning Material Requirements Planning Master Production Scheduling

5. 5 Master Production Scheduling

6. 6 Master Production Schedule Total Demand Week 01234567 Requirement DC 14,000 Requirement DC 21,800 Requirement DC 31,200 Gross Requirement4,0003,0004,0003,0004,0003,000 Demand for the brewery

7. 7 Week 01234567 Gross requirement4,0003,0004,0003,0004,0003,000 Planned available10,0006,0003,0003,6002,9003,5002,800 To Produce4,6002,3004,6002,300 Planned order release4,6002,3004,6002,300 Safety Stock2,4001,8002,4001,8002,4001,800 Master Production Schedule Product:Heineken 60 clLeadtime:1 week Safety stock:3 days Order Quantity2,300

8. 8 Master Production Schedule Planned Available week 1: 10,00 – 4,000 = 6,000 Safety stock should be 2,400, so no order Week 01234567 Gross requirement4,0003,0004,0003,0004,0003,000 Planned available10,0006,0003,0003,6002,9003,5002,800 To Produce4,6002,3004,6002,300 Planned order release4,6002,3004,6002,300 Safety Stock2,4001,8002,4001,8002,4001,800 Product:Heineken 60 clLeadtime:1 week Safety stock:3 days Order Quantity2,300

9. 9 Master Production Schedule Planned Available week 2: 6,000 – 3,000 = 3,000 Safety stock should be 1,800, so no order Week 01234567 Gross requirement4,0003,0004,0003,0004,0003,000 Planned available10,0006,0003,0003,6002,9003,5002,800 To Produce4,6002,3004,6002,300 Planned order release4,6002,3004,6002,300 Safety Stock2,4001,8002,4001,8002,4001,800 Product:Heineken 60 clLeadtime:1 week Safety stock:3 days Order Quantity2,300

10. 10 Master Production Schedule Planned Available week 3: 3,000 – 4,000 = -1,000 Safety stock should be 2,400 so order minimal 3,400 Week 01234567 Gross requirement4,0003,0004,0003,0004,0003,000 Planned available10,0006,0003,0003,6002,9003,5002,800 To Produce4,6002,3004,6002,300 Planned order release4,6002,3004,6002,300 Safety Stock2,4001,8002,4001,8002,4001,800 Order 4,600, since order quantity = 2,300 (order release week 2) Planned available = -1,000 + 4,600 = 3,600 Product:Heineken 60 clLeadtime:1 week Safety stock:3 days Order Quantity2,300

11. 11 Master Production Schedule Planned Available week 4: 3,600 – 3,000 = 600 Safety stock should be 1,800 so order minimal 1,200 Week 01234567 Gross requirement4,0003,0004,0003,0004,0003,000 Planned available10,0006,0003,0003,6002,9003,5002,800 To Produce4,6002,3004,6002,300 Planned order release4,6002,3004,6002,300 Safety Stock2,4001,8002,4001,8002,4001,800 Order 2,300, since order quantity = 2,300 (order release week 3) Planned available = 600 + 2,300 = 2,900 Product:Heineken 60 clLeadtime:1 week Safety stock:3 days Order Quantity2,300

12. 12 Master Production Schedule Planned Available week 5: 2,900 – 4,000= -1,100 Safety stock should be 2,400 so order minimal 3,500 Week 01234567 Gross requirement4,0003,0004,0003,0004,0003,000 Planned available10,0006,0003,0003,6002,9003,5002,800 To Produce4,6002,3004,6002,300 Planned order release4,6002,3004,6002,300 Safety Stock2,4001,8002,4001,8002,4001,800 Order 4,600, since order quantity = 2,300 (order release week 4) Planned available = -1,100 + 4,600 = 3,500 Product:Heineken 60 clLeadtime:1 week Safety stock:3 days Order Quantity2,300

13. 13 Rough Cut Capacity Planning

14. 14 Rough Cut Capacity Planning

15. 15 Production Planning RCCP CRP Forecasting Distribution Requirements Planning Material Requirements Planning Master Production Scheduling

16. 16 Material Requirements Planning

17. 17 Capacity Requirements Planning

18. 18 Planning process Planning is an iterative process: This means that you may run MPS, RCCP, MRP and CRP several times and in different order, before arriving at a feasible solution