Abstract:
The master production schedule (MPS) planning is influenced by the manufacturing
environment. Therefore, the process of MPS planning with make to stock (MTS) strategy will
be different from make to order (MTO) strategy. The MPS is based on production capacity,
changes in inventory of finished products, fluctuations in demand, efficiency and utility of
production factors, and lot size. Companies with MTS strategies make production schedules
based on estimated demand so that customer demand can be met from stock products. While
companies with an MTO strategy make a production schedule after the order is received. This
paper discusses how the time fence approach is used to change MPS for companies with the
MTS and MTO strategies simultaneously. With the time fences approach, companies can
determine when orders can be received or rejected by looking at the position of the order on the
existing MPS. This paper describes a case of applying the time fences approach to determine
the MPS changes in a garment company that produces bed covers sets as the MTS products
and other products as MTO products. This paper also explains the procedures to determine
changes in the MPS based on predetermined time fences.
