Aggregate

Production
Planning
 • It is the process of planning the quantity and

Aggregate
timing of output over the intermediate time
horizon (3 months to one year)
Production • Within this range, the physical facilities are

Planning assumed to be fixed for the planning period

• Therefore, fluctuations in demand must be met by

varying labour and inventory schedule
Aggregate Vary the size of the
workforce
Vary the hours
worked

Planning
Strategies
Vary inventory Subcontract
levels
Master
Production
Schedule
(MPS)
 Master
Production
Schedule
Master Production Schedule (MPS)
• MPS is a schedule showing week by week how many of
each product must be produced according to customer
orders and demand forecasts
• Its purpose is to meet the demand for individual
products in the product group
• It shows when incoming sales orders can be scheduled
into production, and when each shipment can be
scheduled for delivery
Functions of MPS
• To translate aggregate plans into specific end items

• Evaluate alternative schedules

• Generate material requirement

• Generate capacity requirements

• Facilitate information processing

• Effective utilization of capacity

Material
Requirement
Planning
 • Materials Requirement Planning (MRP) is a technique for

determining the quantity and timing for the acquisition of

dependent demand items needed to satisfy master

MRP
production schedule requirements

• MRP provides information such as due dates for

components that are subsequently used for shop floor

control

• Once this information is available, it enables managers to

estimate the detailed requirements for each work centres

Objectives
• Inventory Reduction

• Reduction in the manufacturing

and delivery lead times

• Realistic delivery commitments

• Increased efficiency
MRP System