1. 11 Master Scheduling CHAPTER
Covers pages
Homework problems # 19,20,21,22 on page 506.

2. Master 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

3. The 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

4. Master Scheduling Process

5. Projected On-hand Inventory
Inventory from previous week
Current week’s requirements - =

6. Projected On-hand Inventory

7. Projected On-hand Inventory

8. Available 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.

9. Available 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.

10. Available to Promise (ATP)

11. ATP Example Item: 3-in. gate valve Order Policy: 80 units Quantity
on Hand: 45
Forecast
April
May 20 1
MPS quantity
Customer
orders
(booked) 23
Projected
on-hand
inventory 22 2 15
ATP inventory 7 3 80 8 62 68 4 42 40 5 6

12. ATP Order-Acceptance Example
Based on the previous slide, should the following orders be accepted?
Order Amount (units) Week Requested

13. Updated ATP Item: 3-in. gate valve Order Policy: 80 units Quantity
on Hand: 45
Forecast
April
May 20 1
MPS quantity
Customer
orders
(booked) 23
Projected
on-hand
inventory 22 2
ATP inventory 3 80 32 50 6 4 30 40 5 38
-10 7 8