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While preparing monthly production plan, does purchase executives take part? How monthly production plan is linked to purchase planning?

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Question added by Venu Gopala Rao Gannavarapu
Date Posted: 2013/08/27
Tariq Al Farah
by Tariq Al Farah , Commercial Manager , Zeus International Management Consulting & Trade LLC

It is a good quiestion from you

By using many variables as inputs the MPS will generate a set of outputs used for decision making. Outputs may include forecast demand, production costsinventory money, customer needs, inventory progress, supply, lot size, production lead time, and capacity. Inputs may be automatically generated by an ERP system that links a sales department with a production department. For instance, when the sales department records a sale, the forecast demand may be automatically shifted to meet the new demand. Inputs may also be inputted manually from forecasts that have also been calculated manually. Outputs may include amounts to be produced, staffing levels, quantity available to promise, and projected available balance. Outputs may be used to create a Material Requirements Planning (MRP) schedule.

A master production schedule may be necessary for organizations to synchronize their operations and become more efficient. An effective MPS ultimately will:

  • Give production, planning, purchasing, and management the information to plan and control manufacturing
  • Tie overall business planning and forecasting to detail operations
  • Enable marketing to make legitimate delivery commitments to warehouses and customers
  • Increase the efficiency and accuracy of a company's manufacturing

The Purchaser shall do the business plan for purchasing to cover At least3 months, but preferably if can cover6 months supply of the good required for the business plan, Also the Purchase Manager have a good knowledge about Season's Production where he can buy before time and store before the prices Doubled.

 

 

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