5.7.1 Exercise: Master Scheduling and Product Variants

Intended learning outcomes: Determine the degree of overplanning of the number of variants in in the master production schedule (MPS).

Your company produces scissors for left- and right-handed customers. While both models have the same blades, the handles differ. Blade and handle are assembled after you have received customer orders. You can assume that approximately 12% of your customers are left-handed. If you produce 100 blades, how many handles for each type of scissors should you produce?

Solution: Since the actual option percentage is not known in advance, over­planning in the master production schedule (MPS) is necessary to cover the un­certainty. A safety demand of 25% would result in 12 * 1.25 = 15 handles for left-handled scissors and 88 * 1.25 = 110 handles for right-handed scissors to be produced. Because only 100 blades are produced, it makes no sense to have more than 100 handles of either type. Thus, a good decision would be to produce 15 handles for left and 100 handles for right-handed scissors.

Course section 5.7: Subsections and their intended learning outcomes

• 5.7 Scenarios and Exercises

Intended learning outcomes: Disclose master scheduling for product variants. Calculate the quantity available-to-promise (ATP). Examine an example of the theory of constraints. Elaborate the master planning case.

• 5.7.1 Exercise: Master Scheduling and Product Variants

Intended learning outcomes: Determine the degree of overplanning of the number of variants in in the master production schedule (MPS).

• 5.7.2 Exercise: Available-to-Promise (ATP)

Intended learning outcomes: Calculate the quantity available-to-promise (ATP), whereupon the master production schedule as well as a list of customers’ orders that have already been promised are given.

• 5.7.3 Exercise: Theory of Constraints

Intended learning outcomes: Explain an example of the theory of constraints, whereupon you produce two products, which use the machine capacity of three machines with a certain load. Identify and speed up the bottleneck.

• 5.7.4 Scenario: Master Planning Case —  Introduction and Sales Plan

Intended learning outcomes: Present the case study — company and products, as well as the sales plan.

• 5.7.4b Scenario: Master Planning Case —  Production Plan and Inventory Plan

Intended learning outcomes: Work out and explain various variants of the production plan and inventory plan on the basis of a long-term sales plan of a company in the wood industry.

• 5.7.4c Scenario: Master Planning Case — Procurement Plan and Animated Solution

Intended learning outcomes: Work out and explain the resulting procurement plan, on the basis of a long-term sales plan of a company in the wood industry. Enjoy the Animated Solution.