Production Planning (MPS/MRP)

Framework

IRON LAW: Plan Hierarchically — Demand → MPS → MRP → Shop Floor

Production planning flows TOP-DOWN:
1. Demand forecast / customer orders → what to make, when
2. MPS → master schedule for finished goods
3. MRP → material and component requirements (what to buy, when)
4. Shop floor scheduling → which machine, which sequence

Skipping levels (going from demand forecast directly to shop floor)
creates chaos — material shortages, capacity conflicts, missed deliveries.

Planning Hierarchy