What does a master production schedule (MPS) provide?

A master production schedule (MPS) serves as a critical component of manufacturing planning, specifically designed to outline what needs to be produced, in what quantities, and when these production activities should occur. This schedule focuses on the finished goods level, providing clarity and direction for the production process. It integrates demand forecasts with internal production capabilities to establish a clear timeline for manufacturing that aligns with overall business objectives.

By detailing the specific items to be produced and scheduling production runs, the MPS helps ensure that resources are allocated efficiently, minimizing wastage and accommodating any fluctuations in demand. Additionally, it acts as a communication tool across various departments, ensuring that production plans are in sync with sales and inventory strategies. This thorough planning enables firms to meet customer demand promptly while maintaining optimal inventory levels.