Master production scheduling

4 important questions on Master production scheduling

What are 4 characteristics of the Mast Production Schedule (MPS)?

  • Production plan (=Aggregate plan) disaggregated into individual end items
  • Final word about what will be built and when
  • Altering(=wijzigen, veranderen) the master schedule can alter inventory levels, lead times, capacity requirements and so on
  • Should not be a "wish list"

What is the push-pull boundary (=CODP)?

The stock point in the logistic chain, downstream from which all activities take place on customer order (pull control). Upstream activities take place on planning and forecast (push control).

What are the 4 possible push-pull boundaries? Say something about the first 3: when to use that particular push-pull boundary?

  • Zie afbeelding. 4 possibilities:
    • Make-to-stock (MtS)
    • Assemble-to-order (AtO)
    • Make-to-order (MtO)
    • Engineer-to-order (EtO)
  • MtS, in case of limited assortment, standard products,
    • with reliable sales forecast
    • low priced
    • where fastness and timeliness of delivery is important
    • in case production has long set-up times and/or leadtimes
  • MtO, in the case of expensive customer-specific products,
    • with poorly predictable sales
    • where long delivery times are acceptable
  • AtO (try to move PPB away from customer)
    • if leadtime downstream the PPB is sufficiently short
    • if organisation and production system are flexible
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What are 3 advantages of moving the Push-pull boundary upstream the product flow?

  • Reduce inventory cost
    • Added value of components is lower than of finished products(FP)
    • Les components on stock than FP (compare 7 components each in 2 variants lead to 14 stock items of components and 27 of FP
  • Reduce risk involved in keeping inventory
    • Wrong products on stock
    • Obsolete(=verouderd) stock / too much on stock
    • Lost sales (insufficient stock)
  • Increase flexibility
    • Customer order (quantity, product) changes
    • New product introduction

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