Master Production Scheduling and Material Requirements Planning

An MPS is a statement of what the company expects to produce, based on the tactical plan and budget constraints. A master-scheduled item is critical in its impact on lower-level components or resources, such as skilled labor, key machines, and revenues. Single-level scheduling implies master scheduling at the item level of an end deliverable. multilevel master schedules explode planned orders down to component items.

The master scheduling process consists of:

• Determining gross demand (forecast, customer orders, and interplant demand).

• Subtracting what you have (inventory, purchase orders, and work orders).

• Calculating net requirements and determining when you need them.

You can generate a master schedule for all items or for a net-change generation, which includes only items that have been affected by transactions since the last generation. After you generate the master schedule, you can review and respond to messages.

MRP uses information from the bill-of-material and inventory records to calculate the time-phased net-material requirements for every component item and subassembly. MRP suggests a replenishment plan to support the production of the quantities that are specified in the MPS.

A single-facility requirements plan critically affects lower-level components or resources, such as skilled labor or revenues. Single-facility implies MRP at the component level.

The MRP process consists of:

• Determining gross demand (forecast, customer orders, work orders, and interplant demands).

• Subtracting what you have (inventory, purchase orders, and work orders).

• Calculating net requirements and when you need them.

You can process a material requirements plan in one of two ways:

• Freeze the MPS and generate MRP.

• Validate the MPS, and then generate a combination of MPS and MRP.

When you process a material requirements plan, the system summarizes gross material requirements for each assembly, component, and part number for raw material. The requirements plan supports the MPS for each time period in the planning horizon.

You can generate a material requirements plan for all items or for a net change generation, which includes only the items that have changed since the last generation. After you generate MRP output, you can review and respond to messages.

The system uses these inputs to MRP:

• Demand.

• Forecast.

• Sales orders.

• Planned and firm work orders.

• Supply.

• Firm work orders.

• Rate schedules.

• Purchase orders.

• Inventory.

• In-receipt routing.

• Product data.

• Item Branch File data (F4102).

• Bill of Material Master File data (F3002).

The system generates these outputs from MRP:

• Action and warning messages.

• Time series with calculated quantities for:

  • Ending Available (EA).

  • Available to Promise (ATP).

  • Cumulative Available to Promise (CATP).

  • Planned orders.