PRODUCTION &

OPERATIONS MANAGEMENT
2025/2026

Year 3 – semester 5

Master Production Schedule (MPS)

Dr. Ghada Kholief

Ghada Kholief Production and Operation Management

What is the Master Production Schedule
(MPS)?
 Definition: The MPS defines what finished goods
will be produced, how many, and when.

 Disaggregation of aggregate production plan

 Specifies exact items (SKUs) and time periods
 Acts as a contract between production and
marketing
 Covers final products only, not components

Ghada Kholief Production and Operation Management

Timeframes

time fences (or timeframes) in PDP/MPS (Production Master Plan / Master

Production Schedule): how far into the future you can make schedule changes
depending on how “frozen” or “flexible” the plan is.

Ghada Kholief Production and Operation Management

 term Typical meaning

No changes allowed. Orders are released, materials are

Frozen committed, and production is already scheduled. Changing
now causes disruptions or cost.

Relatively fixed. You may adjust only with managerial

Firm approval or in exceptional cases (machine breakdown,
major client issue).

Flexible / You can change, add, or cancel planned orders. Demand and
Full production can still be balanced.

Far future. Orders are not yet firm — purely forecast-based.

Open
Changes are easy and expected.
Ghada Kholief Production and Operation Management
 Period Color Zone Meaning

“Changes should be avoided.” Production

1–3 Dark blue Congelado (Frozen)
already committed.

Medium “Relatively rigid period.” Adjustments only

4–6 Firme (Firm)
blue if necessary.

“Changes can be made.” Some orders can

7–9 Light blue Flexível (Flexible)
be rescheduled.

Very light “Orders not firm.” Only forecasts — easy to

10–12 Aberto (Open)
blue modify.

Ghada Kholief Production and Operation Management

➢ The Frozen Zone ensures stability — production executes without last-minute
disruptions.

➢ The Firm Zone allows limited control — changes possible but must be justified.

➢ The Flexible/Open Zones let planners adjust plans as new demand forecasts arrive.

Example

➢ Suppose your MPS covers 12 weeks:

➢ Weeks 1–3: Frozen → you can’t change customer orders already in process.

➢ Weeks 4–6: Firm → only minor quantity/date tweaks allowed.

➢ Weeks 7–12: Flexible/Open → sales forecasts can change; new orders may be added.

Ghada Kholief Production and Operation Management

Why MPS is Important
 Connects strategic plans with operational control
 Improves coordination between departments
 Enables delivery reliability and capacity utilization
 Reduces inventory fluctuations
 Provides visibility for resource and financial planning

Ghada Kholief Production and Operation Management

Ghada Kholief Production and Operation Management
The MPS Process (Step-by-Step)
1. Collect demand and firm orders
2. Review inventory and safety stock
3. Generate initial schedule (lot size)
4. Perform RCCP check (feasibility)
5. Adjust schedule if overloaded
6. Freeze near-term periods
7. Release MPS to MRP

Ghada Kholief Production and Operation Management

Ghada Kholief Production and Operation Management
Ghada Kholief Production and Operation Management
Ghada Kholief Production and Operation Management
Rough-Cut Capacity Planning (RCCP)
 Checks feasibility of MPS against available capacity
 Converts lots to required hours or machine time
 Identifies overloaded/underloaded weeks

 Example: Product A (50×0.9h) + Product B (60×1.6h) = 141h → Overload

Ghada Kholief Production and Operation Management

Ghada Kholief Production and Operation Management
Ghada Kholief Production and Operation Management
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Available-to-Promise (ATP)
 Shows uncommitted units available for new orders

ATP=Available Units−Committed Units (until next replenishment)

Where:
 Available Units = stock on hand or incoming production batch
 Committed Units = already promised quantities to confirmed customer orders
up to the next replenishment (production lot)

Ghada Kholief Production and Operation Management

Purpose
ATP helps the Sales and Operations Planning (S&OP) or Marketing Department:
➢ Know how many products can still be sold and when.
➢ Provide realistic delivery dates to customers.
➢ Avoid stockouts or overbooking production capacity.

Ghada Kholief Production and Operation Management

Ghada Kholief Production and Operation Management
Ghada Kholief Production and Operation Management
Ghada Kholief Production and Operation Management
Requirements (Needs) = max(Expected Demand, Firm Orders)
 Week 1: max(30, 33) = 33
 Week 2: max(30, 20) = 30
 Week 3: max(30, 10) = 30
 Week 4: max(30, 4) = 30
 Weeks 5–8: max(40, 0) = 40

Ghada Kholief Production and Operation Management

 Expected Ending Stock = Initial Stock + Production – Requirements

 Week 1: 64−33=31 (above 10, no production)

 Week 2: 31−30=1<10 → produce +70 → End Stock=71
 Week 3: 71−30=41
 Week 4: 41−30=11
 Week 5: 11−40<10 → produce +70 → End Stock=41

Ghada Kholief Production and Operation Management

Ghada Kholief Production and Operation Management
 ATP shows how many units are available for new customer orders until the
next production lot.
 APICS Formula:
 For first MPS: (Beginning Inventory + MPS₁) − Sum(Firm Orders until next MPS)
 For later MPS: MPSₜ − Sum(Firm Orders from t until before next MPS)
 Week 2: (64 + 70) − (33 + 20 + 10 + 4) = 134 − 67 = 67 → Adjusted = 31
(available now) = 36
 Week 5: 70 − 2 = 68
 Week 6: 70 − 0 = 70
 Week 8: 70 − 0 = 70

Ghada Kholief Production and Operation Management

Ghada Kholief Production and Operation Management
Ghada Kholief Production and Operation Management
Check with ATP

➢ MPS lots (kl): W2=70, W5=70, W6=70, W8=70

➢ ATP per lot (before new orders):
➢ From W2 lot (covers deliveries W2–W4): 36 kl
➢ From W5 lot (covers deliveries W5 only, next lot at W6): 68 kl
➢ From W6 lot: 70 kl
➢ From W8 lot: 70 kl

Ghada Kholief Production and Operation Management

Order 34 — 25 kl due Week 4 (May)
 Uses the W2 ATP window (W2–W4).
 Available = 36 kl → allocate 25 kl → remaining = 11 kl.
 Feasible without shifting production.

Order 35 — 45 kl due Week 1 (June) = Week 5

 Uses the W5 ATP window (W5 up to before W6).
 Available = 68 kl → allocate 45 kl → remaining = 23 kl.
 Feasible without shifting production.

Ghada Kholief Production and Operation Management

Updated ATP after accepting both

 W2 window (W2–W4): 36 − 25 = 11 kl left

 W5 window (W5): 68 − 45 = 23 kl left
 W6 window: 70 kl (unchanged)
 W8 window: 70 kl (unchanged)

 Conclusion: Keep the current MPS. Confirm to Sales:

 Order 34: deliver in Week 4 (May).
 Order 35: deliver in Week 1 (June).

Ghada Kholief Production and Operation Management

MPS vs. MRP
Aspect MPS MRP
Focus Finished goods Components and materials
Medium term
Time Horizon Short term (days/weeks)
(weeks/months)
What materials & when
Objective What & when to produce
needed
Inputs Demand, stock, lot size BOM, lead time, MPS
Material orders, planned
Output Production schedule
receipts

Ghada Kholief Production and Operation Management

MPS and ERP Integration
 MPS is the core tactical layer of ERP
 Feeds data into MRP, CRP, Purchasing, HR, and Finance
 ERP automates capacity checks, material updates, and order confirmations

Ghada Kholief Production and Operation Management

Best Practices
 Update MPS weekly
 Sync with forecasts and capacity data
 Involve cross-functional teams
 Track KPIs: schedule adherence, capacity utilization, inventory turns
 Use optimization or simulation to evaluate alternatives

Ghada Kholief Production and Operation Management

Common Problems
 Inaccurate forecasts → rescheduling
 Ignoring capacity → infeasible plan
 Too frequent changes → instability
 Lack of coordination → conflicting priorities
 Neglecting safety stock → poor service level

Ghada Kholief Production and Operation Management

References
 MRP easy Blog: What Is a Master Production Schedule (MPS)?
 [Link]: Master Production Schedule
 Stevenson, W. J., Operations Management, 14th Ed.
 Heizer, Render & Munson, Operations Management
 Silver, Pyke & Peterson, Inventory and Production Management in Supply
Chains

Ghada Kholief Production and Operation Management