Determining the changes in the Master Production Schedule (MPS) at the company with Make to Stock (MTS) and Make to Order (MTO) strategies

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.