What will be produced?
Identifies the finished goods or principal product groups in scope.
ERP Guides
Production planning guide
What Is a Master Production Schedule (MPS), and How Do You Create One?
A Master Production Schedule shows which principal products to make, in what period and in what quantity. It helps you prepare a workable production plan by considering orders, demand forecasts, usable inventory and production capacity together.
What decisions does an MPS support?
MPS creates a master, period-based plan between demand and production. It makes visible which products and quantities are needed for orders, how inventory targets will be maintained and what load production resources will face.
When will it be produced?
Places production quantities into weekly or monthly periods.
How much will be produced?
Considers demand alongside usable inventory and confirmed receipts.
What information do you need before planning?
Orders and demand
Confirmed customer orders, due dates and period forecasts, where used.
Usable inventory
Opening inventory, reservations, quality blocks and the safety-stock policy.
Scheduled receipts
Production orders and purchase deliveries expected on time.
Product and production data
Product groups, production lead times, work centers, shifts and critical capacity constraints.
How do you create an MPS in 7 steps?
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1
Set the planning horizon and time buckets
Build the plan in weekly or monthly periods. Choose a cadence that fits order frequency, production lead times and the business review cycle. Using the same periods across products makes comparisons easier.
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2
Combine order and demand information
Place confirmed customer orders and, where used, demand forecasts into periods. Define how forecasts are consumed so the same demand is not counted once as a forecast and again as a confirmed order.
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3
Check usable inventory and scheduled receipts
Separate opening usable inventory, allocated quantities and production or purchase receipts expected on time. Do not treat quality-blocked or already reserved stock as freely available.
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4
Select products and set priorities
Choose the finished goods or principal items in scope. Make the prioritisation criteria explicit, such as due dates, customer priority, product family, inventory policy and critical production resources.
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5
Calculate production quantities by period
When determining the quantity needed to cover demand and the target ending inventory, account for opening usable stock and confirmed receipts. Keep the calculation visible for each product and period.
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6
Validate capacity and material availability
Compare draft quantities with work-center loads, shifts, routing times and critical materials. The MPS sets the plan for principal items; detailed component requirements are calculated in the subsequent MRP run. If capacity or material is constrained, review alternative dates and quantities before approval.
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7
Approve the plan and review actual results
Define who prepares, reviews and approves the plan. Clarify who may change near-term quantities. Each period, compare actual orders, production, inventory and capacity with the plan and record the reasons for variances.
A simple MPS quantity example
This is a simplified planning example for one product in one period. In a live plan, business-specific rules such as reservations, scrap, lot sizes, due dates and capacity also need to be considered.
Period demand
90 units
Target ending inventory
10 units
Opening usable inventory
25 units
Confirmed production receipt
15 units
Simplified planned production quantity: 90 + 10 − 25 − 15 = 60 units
In this example, a 60-unit production plan covers period demand and the target inventory. It assumes demand contains no order/forecast overlap and that the listed receipts will be available on time.
MPS, MRP and capacity planning are different
MPS
Plans which principal products to make, in what period and quantity.
MRP
Uses bills of materials and inventory data to calculate component requirements.
Capacity planning
Checks whether production quantities are feasible against work centers, shifts and available time.
Frequently asked questions about MPS
What is a Master Production Schedule (MPS)?
A Master Production Schedule shows the planned quantity and period for selected finished or principal items. It brings demand, inventory, production receipts and capacity review into one plan.
What is the difference between MPS and MRP?
MPS plans period quantities for principal items. MRP uses that plan and data such as bills of materials to calculate when and how much of lower-level components is required.
How often should an MPS be updated?
One update cadence does not suit every business. Set a regular review interval based on order changes, supply lead times, production cycles and the planning team’s review calendar; also define how urgent changes are approved.
Does MPS account for capacity?
Yes. Draft quantities should be checked against available production resources. MPS is not, by itself, a detailed capacity schedule; work-center loads, shifts and operation times need separate validation.
Build the MPS around the business’s product structure, demand patterns, inventory policy and production constraints. Review the plan as data changes and define update ownership in advance.