MRP-ERP-FUNDAMENTALS5 MIN READ
S&OP Feeds the MPS
Explain how S&OP and forecast accuracy practices shape the master production schedule before MRP runs.
Do not ask MRP to reconcile strategy. Forecast quality A forecast is a hypothesis about future demand. Evaluate it with actuals, bias, and known causal drivers, not just confidence. S&OP trade-offs S&OP compares expected demand with available supply, inventory policy, capacity, and financial targets. It decides which imbalance the business will accept. MPS translation The MPS converts the agreed plan into item-level, time-phased production intent. Only then should MRP explode the dependent demand into components.
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