Master Production Schedule

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A statement of production, not a statement of market demand MPS takes into account capacity limitation, as well as the desire to utilize capacity.

master production schedule (MPS) is a plan for different commodities to be produced in each period such as production, staffing, inventory, etc.

It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded.

If the MPS is to state in terms of product groups, we must create a special bill of material (planning bill) for these groups.

Based on the production output specified in the MPS the day to day cashflow can be forecasted.

Back to: Production planning: An Introduction

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