IntroductionOne of the challenges for the operations manager in any business is the planning of key production activities. There are many variables to consider in this planning process. These factors include production capacity, customer demand, supplier performance, design completion, cash flow, and personnel (Heizer, 2011). All of these factors come together to create a production plan that can fluctuate depending on many external forces. The idea of ​​the Master Production Schedule and Sales and Operations Plan is to help predict and achieve required production levels. The goal is to maximize efficiency and profitability by anticipating demand and adjusting production schedules accordingly. Sales and Operations Plan (S&OP) and Master Production Schedule (MPS) are two tools used in operations management to facilitate the planning process. Master Production Schedule (MPS) The MPS is the overall schedule that describes exactly what needs to be achieved. and when. The schedule follows the production plan which sets the overall level of production in general terms. The MPS breaks down the more generic production plan and provides details on what exactly is being produced (Heizer, 2011). The production plan is derived from all elements of the planning process and MPS must meet this production plan. A company marketing MPS solutions identifies MPS inputs such as forecast demand, production costs, inventory costs, customer orders, inventory levels, supply, lot size, production lead time and capacity. This results in the MPS outputs of quantities to be produced, staffing levels, available quantity to be promised, and projected available balance (Inventory Solution Logistics...... middle of paper...... expensive products to keep in stock and it is not costly to change production levels The final approach to production planning is a mixture of level and tracking methods. Many companies will use elements of both to. create the optimal balance between production and available inventory (Heizer, 2011). Heizer, J. &. (2011). Corp. (2007). Retrieved April 26, 2011 from Inventory Solutions Logistics Corp.: http://www.inventorysolutions.org/def_mps.htmLapide, L. (2004, Fall). The Process. Wallace, T. (2010, Fall). Operations Planning: Cost and Benefit Analysis. Journal of Business Forecasting. .