Complete The Following MP's Record Lot Size 130 Lead Time 1
Complete The Following Mps Recordlot Size130lead Time1quantity On H
Complete the following MPS (Master Production Schedule) record with the given parameters: Lot Size of 130 units, Lead Time of 1 period, along with details on Quantity on Hand, Forecast, Customer Orders (booked), Projected On-Hand Inventory, MPS Quantity, MPS Start, Available to Promise Inventory, and other relevant data. Develop a comprehensive MPS table to plan and coordinate production effectively, ensuring that all items are scheduled accurately to meet customer demand while maintaining optimal inventory levels.
Paper For Above instruction
The Master Production Schedule (MPS) is an essential component of manufacturing planning, serving as a detailed plan that specifies what needs to be produced, in what quantities, and when. The process involves balancing demand forecasts and customer orders with manufacturing capabilities to ensure customer satisfaction while minimizing excess inventory and production costs. In this paper, we will develop a comprehensive MPS record based on the provided parameters: lot size of 130 units, lead time of 1 period, and various inventory data points. The goal is to create an accurate and executable production plan that aligns production activities with demand forecasts and customer orders.
The first step in developing an MPS record is to understand the foundational parameters. The lot size of 130 units indicates the minimum batch size for production. The lead time of 1 period specifies the time required to produce a batch and makes it essential to schedule production accurately to meet demand deadlines. Other critical data include Quantity on Hand, which indicates current inventory levels; Forecast, which estimates future demand; Customer Orders, representing booked orders; and Projected On-Hand Inventory, projecting future inventory levels after sales, production, and other factors.
Data Inputs and Assumptions
- Lot Size: 130 units
- Lead Time: 1 period
- Quantity on Hand: 400 units (initial inventory)
- Forecasted Demand: 300 units for the upcoming period
- Customer Orders (booked): 150 units
- Projected On-Hand Inventory: calculated based on starting inventory and demand
- MPS Quantity: Determined to meet demand within constraints
- MPS Start: The period in which production begins
- Available to Promise (ATP): inventory available to fulfill new customer orders
Using these inputs, the MPS record is constructed to reconcile the planned production with actual demand and existing inventory. The process involves calculating the net inventory after customer orders and forecast demand, then scheduling production in multiples of the lot size, considering the lead time.
Step-by-Step MPS Calculation
Period 1
Initial Quantity on Hand = 400 units
Forecast for Period 1 = 300 units
Customer Orders (booked) = 150 units
Total demand = Forecast + Customer Orders = 300 + 150 = 450 units
Projected On-Hand Inventory before production = Quantity on Hand - Total demand = 400 - 450 = -50 units
Since inventory cannot be negative, production must be scheduled to cover the shortfall, considering lot size constraints. Production is scheduled for the start of Period 2, given the 1-period lead time.
Period 2
Production in Period 1, scheduled now, will produce 130 units (lot size). The available inventory after production will be previous inventory (assuming initial) plus production, minus demand.
Available at the start of Period 2 = 0 (since inventory was negative after Period 1 demand, we align with starting inventory plus production)
Production scheduled for Period 2 = 130 units, enough to cover the remaining demand and restore inventory levels.
Final MPS Record Summary
| Period | Starting Inventory | Production (MPS Quantity) | Demand (Forecast + Orders) | Ending Inventory | Available to Promise (ATP) |
|---|---|---|---|---|---|
| 1 | 400 | -- | 450 | -50 | 0 (no additional orders can be promised) |
| 2 | -50 (adjusted to zero) | 130 | 300 (forecast) + 150 (customer orders) = 450 | 130 - 450 + 130 = -190 (inventory shortfall, needs further planning) | 0 |
The above illustrates the need for additional planning, perhaps further production or adjusted forecasts, to meet the steady demand. The key is to schedule production to ensure inventory does not go negative, which would signal stockouts.
Conclusion
The development of an effective MPS requires a detailed understanding of inventory levels, demand forecasts, customer orders, and production constraints, including lot size and lead time. This example demonstrates the importance of aligning production schedules with demand forecasts and customer commitments to maintain a balance between inventory carrying costs and customer satisfaction.
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