Operations Management: An Integrated Approach, 5th Edition

EVALUATING AND ACCEPTING THE MPS

To evaluate the MPS in terms of customer service, the master scheduler checks that promised customer delivery dates are met. He or she also makes sure that the MPS provides enough flexibility to respond to new customer orders.

To evaluate the MPS for effective use of resources, the master scheduler checks that enough capacity is available to meet the schedule in each time period. This capacity includes short-term changes such as overtime, subcontracting, and temporary employees.

To evaluate the MPS in terms of cost, the master scheduler compares the MPS to the aggregate plan, which specifies available resources. If the MPS needs additional resources, the company may not achieve the objectives of the marketing plan and, consequently, the business plan.

When the master scheduler has evaluated and accepted the MPS, this authorized MPS is input into the MRP system, which is discussed further in Chapter 14.

Before You Go On

Be sure that you understand the sequential process of master scheduling:

1. The master scheduler uses a rough-cut capacity planning technique to calculate whether the company has the capacity to meet the proposed MPS.
2. If the proposed MPS is feasible, it is evaluated in terms of customer service, effective use of resources, and inventory investment.
3. If the proposed MPS is accepted, it becomes the authorized MPS. If capacity is insufficient, ...