11-1

CHAPTER11

Master SchedulingCovers pages 493-498.

Homework problems # 19,20,21,22 on page 506.

11-2

Master SchedulingMaster Scheduling

The heart of production planning and control It determines the quantity needed to meet demand from

all sources It interfaces with

Marketing Capacity planning Production planning Distribution planning

Provides senior management with the ability to determine whether the business plan and its strategic objectives will be achieved

11-3

The Master SchedulerThe Master Scheduler

The master scheduler’s duties: Evaluating the impact of new orders Providing delivery dates for orders Deals with problems

Evaluating the impact of production or delivery delays

Revising master schedule when necessary because of insufficient supplies or capacity

Bring instances of insufficient capacity to the attention of relevant personnel so they can participate in resolving conflicts

11-4

Master Scheduling ProcessMaster Scheduling Process

11-5

Projected On-hand InventoryProjected On-hand Inventory

Projected on-handinventory

Inventory fromprevious week

Current week’srequirements

-=

11-6

Projected On-hand InventoryProjected On-hand Inventory

11-7

Projected On-hand InventoryProjected On-hand Inventory

11-8

Available to Promise (ATP) ConceptAvailable to Promise (ATP) Concept

The available to promise (ATP) is the period’s MPS quantity minus the sum of customer orders occurring before the next MPS receipt. During the first master schedule period, the ATP quantity includes the on-hand balance (inventory).

The ATP quantity is only calculated for the first week and for subsequent weeks in which there is an MPS quantity.

11-9

Available to Promise (ATP) CalculationAvailable to Promise (ATP) Calculation

a. Concept

Amount of MPS that can still use to meet new booking requests, considering current on-hand,

MPSt , and COt

b. First Week:

ATP=current OH + MPS in first week - cumulative COt occurring before the next MPS receipt.

c. Subsequent Weeks:

Only for weeks when an MPS quantity arrives.

ATP= MPS of the week - cumulative COt

occurring before the next MPS receipt.

11-10

Available to Promise (ATP)Available to Promise (ATP)

11-11

ATP ExampleATP Example

Item: 3-in. gate valve Order Policy: 80 units

Quantity on Hand: 45

Forecast

April May

2020

1

MPS quantity 00

Customer orders (booked)

2323

Projected on-hand inventory

2222

2020

2

00

1515

22

ATP inventory 77

2020

3

8080

88

6262

6868

2020

4

00

44

4242

4040

5

00

00

22

4040

6

8080

00

4242

8080

4040

7

00

00

22

4040

8

8080

00

4242

8080

11-12

Based on the previous slide, should the following orders be accepted?

Order Amount (units) Week Requested

1 5 2

2 38 5

3 24 3

4 15 4

ATP Order-Acceptance ExampleATP Order-Acceptance Example

11-13

Updated ATPUpdated ATP

Item: 3-in. gate valve Order Policy: 80 units

Quantity on Hand: 45

Forecast

April May

2020

1

MPS quantity 00

Customer orders (booked)

2323

Projected on-hand inventory

2222

2020

2

00

2020

22

ATP inventory 22

2020

3

8080

3232

5050

66

2020

4

00

44

3030

4040

5

00

3838

-10-10

4040

6

8080

00

3030

8080

4040

7

00

00

-10-10

4040

8

8080

00

3030

8080