Map
Framework

Planning sequence: aggregate plan, MPS, MRP, scheduling

The question it answers

An operations director wants to know which planning steps turn forecasts and customer orders into production and purchase orders, so the plant is neither short of materials nor overstocked.

Origin
Slack et al., 2022, chs 10, 11, 14; Chopra, 2019, ch. 8
Diagram type
Process by phase
Level of analysis
Firm
Topics
Supply chain & operations
Delivery lorry pulling a chain of linked glass boxes, icon for supply chain

Diagram

Planning sequence: aggregate plan, MPS, MRP, scheduling

  1. Inputs
  2. Orders and forecasts
  3. Strategic objectives and existing capacity
  4. Planning
  5. Aggregate plan (medium term, up to about 18 months)
  6. Master production schedule, MPS (volume and timing of each end product)
  7. MRP (materials from the MPS, bill of materials and stock records)
  8. Scheduling (detailed timetable of what, when and where)

Pitfalls

Pitfall

Running MRP from an unachievable master production schedule. Slack et al. record that early MRP II implementations were made less effective by plans that could not be met; sales and operations planning (S&OP) was meant to align plans across functions.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Chopra, S. (2019) Supply chain management: strategy, planning, and operation (7th global edn). Harlow: Pearson.No DOIpearson.comCited in 4 articles
  2. Slack, N., Brandon-Jones, A. and Burgess, N. (2022) Operations Management (10th edn). Harlow: Pearson.No DOIpearson.comCited in 3 articles