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1. Production Plan
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1. Production Plan

1.1. New Production Plan
1.1.1. Planned Schedule Item
1.2. List Production Plans

The master production scheduling (MPS) system serves several important purposes:

  1. Increases visibility into future demand

  2. Provides capability for anticipating future demand

  3. Drives the plan for lower level components (i.e., material requirements) based on the forecast

Production plans are at the heart of MPS. Using production plans, you have the ability to load sales forecasts into the system—and then view the impact of the forecasts on production planning.

Typically, MPS is used to plan for items having independent demand. Independent demand items are defined as those items which derive their demand directly from customer requirements through sales orders. By contrast, dependent demand items are normally purchased items and subassemblies. The demand for dependent items is derived indirectly—that is, based on the demand for their parent items in a bill of materials. The material requirements planning (MRP) system is typically used to plan for dependent demand.

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Chapter 3. Schedule Module Home 1.1. New Production Plan