Table of content

Serial Topic
No.

1 Introduction of the Industry

2 Brief about products and competition of the industry

3 Discussion about MPS, MRP, Agg planning, capacity planning and Scheduling –
the concept.

4 List and Analysis of external factors

5 Identification of appropriate framework to minimise the effect of External factors

6 Formulation and Assessment of Strategies

7 Conclusion

Introduction

Food Industry
The food industry is a huge and intricate sector that includes everything from distribution and
retail sales to agricultural and food production. It is vital to the global economy because it
gives consumers all around the world access to necessities like goods and services. The food
industry is broad and complex, with a wide range of subsectors and market niches. From
major international firms to small family-run businesses, everything is included. The sector
must supply the rising demand for food while addressing worries about sustainability and the
environmental impact of food production, among other difficulties. Despite these obstacles,
the food sector continues to develop and evolve, with new business models and technological
advancements appearing to address shifting customer preferences and market situations. The
food sector is essential to Strategies that can reduce the impact of external factors on the
health and well-being of people around the world, and will continue to play a critical role in
the global economy for years to come.

Information technology Industry

The information technology (IT) sector, which includes everything from hardware and
software development to cybersecurity and data analytics, is an industry that is expanding
quickly. Due to the fact that technology is getting more and more ingrained in every facet of
contemporary business and daily life, it is essential to the global economy. The IT sector is
driven by innovation and competition, with new products and services appearing often to
 satisfy changing consumer expectations. There are many different types of businesses in the
sector, from major multinational organizations to small start-ups and solopreneurs. The IT
sector must constantly adapt to new business models and technological advancements, and
cybersecurity and data privacy are becoming more and more crucial. The IT sector persists
despite these obstacles to grow and thrive, and is expected to play a critical role in shaping
the future of business and society for years to come.

Brief about the Products and Competition in the Industry

Food Industry: The food sector includes a wide range of goods, from packaged goods and
fresh produce to processed foods and beverages. Among the most well-liked food items are:

· Chips, chocolate, sweets, biscuits, and other sweet and savoury nibbles are included in the
category of snacks and confectionery.

· Water, juices, soft drinks, tea, coffee, beer, wine, and other alcoholic and non-alcoholic
beverages are included under the heading "beverages."

· Milk, cheese, yogurt, and other dairy-based goods are included in the category of "dairy
products."

· Beef, hog, chicken, and other varieties of meat are included in the category of meat and
poultry goods.

· Bread, cakes, pastries, and other baked foods are included in the category of bakery products.

· Foods that have been frozen, such as meals, fruits, and vegetables, are included in this
category.

Due to the enormous number of participants engaged in the food industry, from small local
firms to significant global organizations, there is fierce competition. To stay competitive,
businesses in the food sector must constantly innovate and set themselves apart. They
frequently accomplish this by launching new items, enhancing the flavor and quality of
current products, or providing affordable prices. The sector places a high priority on
consumer experience, and businesses spend a lot on packaging, branding, and marketing in
order to achieve this. Online marketplaces and direct-to-consumer business models are also
gaining popularity as e-commerce grows, enabling businesses to circumvent conventional
brick-and-mortar retail channels and offer their items directly to consumers.

IT Industry: The information technology (IT) sector includes a broad variety of goods
and services intended to support and advance IT. The following are a few of the most well-
liked products in the IT sector:

· Hardware: This comprises servers, storage systems, desktop and laptop computers, and other
computer parts.
· Software: Operating systems, productivity programs, multimedia programs, and other
programmes made to run on computer hardware are all examples of software.

· Equipment for networking and telecommunications: This category comprises routers,

switches, modems, and other connectivity- and communication-enabling devices.

· Services for cloud computing: These include software as a service (SaaS), infrastructure as a
service (IaaS), and platform as a service (PaaS) option that let users access and use
computing resources online.

· Mobile devices and applications: Smartphones, tablets, and other mobile devices, as well as
the programmes and services that run on them.

The rivalry in the IT sector is fierce because there are so many competitors on the market,
from small startups to significant global businesses. To stay competitive, businesses in the IT
sector must constantly innovate and set themselves apart. They frequently accomplish this
through launching new items, enhancing the usability and functionality of current products,
or providing affordable prices. Customer experience is another important aspect of the
market, and businesses make large investments in marketing, branding, and user interface
design to enhance the customer experience. Online marketplaces and subscription-based
business models are also gaining popularity as a result of the rise of cloud computing and the
move towards remote labor, enabling businesses to offer their goods and services to clients
directly over the internet.

Discussion about MPS, MRP, Agg planning, capacity planning

and Scheduling

Food Industry
Master planning Schedule (MPS)
Master Production Schedule: The master schedule, the bill of materials, the production cycle
timings, and supplier lead times all work together to establish when orders must be placed
after the master schedule and bill of materials specify what supplies should be ordered. The
Master Performance
The schedule includes the number of units that will be produced during a specific time frame.
Quantities are presented at both the aggregate and the specific levels. The terms "aggregate"
and "detailed" can be used to describe weekly or daily production, respectively. The master
production schedule is a table where the columns are time components and
the rows are goods.
Demand forecasting: The first stage in MPS is to project future consumer demand. To
estimate future demand, historical data, market trends, and client needs must be analysed.
Assess production capacity: The next stage is to evaluate the facility's production capacity.
This entails determining each manufacturing line's capacity, the labour pool, and inventory
levels.
Create a production plan: based on the anticipated demand and the available production
capacity. What items will be produced, in what quantities, and when should all be specified in
the production plan. Both the availability of raw materials and the lead times for each product
should be taken into account in the strategy.
Schedule production: After the production plan is finished, scheduling production comes
next. For each production run, resources like manpower, machinery, and raw materials are
allocated. The production plan and capacity restrictions should serve as the foundation for the
timetable.
Monitor and control production: It is important to monitor and control production to ensure
that it aligns with the MPS. This entails monitoring the status of each production run and
modifying the schedule as necessary. To ensure that the items fulfil the necessary
requirements, quality control methods should also be put in place.
Manage inventory: Keeping track of your inventory is important for an MPS. To achieve the
production schedule, you must make sure you have enough raw materials on hand while
avoiding having too much inventory, which might result in waste. In order to make sure that
the supply of finished goods meets demand, you should also keep an eye on inventory levels.
Continuous improvement: Finally, you should continuously review and improve the MPS.
In order to discover areas for development, such as reducing lead times, raising the quality, or
better utilising resources, this entails analysing the data and metrics.
These are the steps to build a productive MPS that helps to satisfy demand, reduce waste, and
boost overall efficiency by adhering to these principles.

Master production schedule for food industry

The MPS can assist to reduce waste and guarantee that items are delivered to clients in a
timely manner in the food processing industry, where many products have short shelf life and
require careful handling. By locating bottlenecks and improving production sequences, the
MPS can also be utilised to increase production efficiency.
On-hand quantity-40 Order Policy-40 Item: Flour

Week 1 Week2 Week3 Week4 Week5 Week6 Week7 Week8

Forecast 20 10 20 20 30 30 30 30
Customer 24 6 15 4 2 0 0 0
orders
On hand 16 6 26 6 16 26 36 6
inventory
MPS 0 0 40 0 40 40 40 0
Quantity
Available 10 - 21 - 38 40 40 -
to
promise

Material Requirement Planning (MRP)

Material Requirements Planning is basically concerned with the inventory of raw materials
and components which are required to produce the products in a facility. The demand for raw
materials and components is termed as secondary demand which is essentially depending
upon the demand for the finished products
MRP systems mainly use following information to determine what material should be
ordered and when: -

• The master production schedule, which describes when each product is scheduled to
be manufactured;
• Bill of materials, which lists exactly the parts or materials required to make each
product;
• Production cycle times and material needs at each stage of the production cycle time;
• Supplier lead -times
Classes of MRP User/ Companies:
MRP systems fall into four categories, often identified as ABCD, in terms of use and
organizational implementation.
I. Class A denotes complete MRP implementation.
II. Class B is a little short of being fully implemented. Despite being restricted to the
industrial sector, the MRP system provides master production scheduling.
III. Class C depicts a traditional MRP strategy where the system is only used for
inventory management.
IV. Class D is an MRP application for data processing. System is used to record data
rather than as a tool for making decisions.
MRP In food processing industry
Analysing the production schedule and figuring out the materials and quantities required
to satisfy demand are also steps in the MRP process. This covers packaging supplies like
boxes and labels as well as raw commodities like flour, sugar, and oil.
Based on the needs and taking into consideration lead times for materials and
manufacturing capacity restrictions, the MRP system subsequently generates a list of
purchase orders and production orders. This makes it more likely that the required
resources will be on hand when needed and that the production process will go smoothly
and effectively.
MRP can be crucial in the food industry for managing perishable goods with limited shelf
life, such as fresh vegetables or dairy products. MRP can help minimise waste and lower
costs while guaranteeing that customers receive high-quality, fresh products by precisely
anticipating demand and scheduling production.

Here, the lead time refers to how long it will take the supplier to supply the goods, and the
safety stock is the bare minimum of stock that needs to be kept on hand to prevent
stockouts. Scheduled receipts are the quantities that have already been ordered and are
anticipated to arrive during the planning period, whereas gross requirements are the total
amount of each material required for production.
Planned order releases are the quantities that must be ordered in accordance with net
requirements, which is the quantity of material required following subtraction of
scheduled receipts and available inventory. The materials will be available when needed
because the planned order release accounts for the lead time needed for delivery.
Food producers can make sure they have the supplies on hand to match production
schedules and customer demand by employing an MRP table similar to this one. This can
save waste, cut down on stockouts, and boost productivity.
Aggregate Planning
In order to ensure that food products are produced and distributed to clients in a timely,
effective, and economical manner, aggregate planning is crucial in the food business. The
food business uses aggregate planning in the following specific instances:

• Demand Forecasting: Demand forecasting is a crucial component of overall

planning in the food sector. For the purpose of setting up production schedules,
allocating resources, and managing inventories, food producers and distributors
need to make an accurate estimation of the demand for their goods. Seasonality,
shifting customer preferences, and economic ups and downs are just a few of the
variables that might affect the demand prediction for food goods.
• Production Capacity: In the food sector, the production capacity is a key
component of the overall planning strategy. Producers of food must ensure that
they have the capacity to fulfil predicted demand without producing too much or
too little. Production procedures, labour availability, and the availability of
equipment can all have an impact on production capacity.
• Seasonality: The seasonal nature of demand for many food goods might
complicate overall planning. For instance, the demand for candy swells around
Halloween in the United States, whereas the demand for turkeys and pumpkin pie
climbs noticeably around Thanksgiving. Food producers must prepare for these
seasonal shifts in demand, making sure they have sufficient raw materials and
production capacity to satisfy consumer demand.
• Inventory control is essential for the food sector to control costs and make sure
that items are available when customers need them. Food producers must weigh
the costs of production and shortages against the expenses of maintaining
inventories. When managing inventories, they must also take into account
elements like product quality, safety, and shelf life.
• Logistics and Transportation: The food sector depends significantly on logistics
and transportation to transfer goods from the maker to the consumer. When
determining production schedules and inventory management strategies, aggregate
planning must consider elements including transportation expenses, delivery
timetables, and capacity restrictions.
In conclusion, aggregate planning is crucial for the food sector to ensure that food is
produced and supplied to clients effectively and efficiently. It assists food producers and
distributors in balancing supply and demand, controlling inventories, and streamlining
production procedures to satisfy client demands.
Table
Here in this Table the months of the year are shown in the first column of this table. The
second column displays the monthly demand for the food item. The third, fourth, and fifth
columns, respectively, display the production levels during regular business hours,
overtime, and subcontracting. Each month's starting inventory is displayed in the sixth
column, while the month's ending inventory is displayed in the seventh column.
Utilizing the table, production and inventory levels can be planned to fulfil demand while
keeping costs to a minimum. For instance, more overtime production may be required in
months with high demand (like August and September) in order to meet the demand
without turning to subcontracting, which can be more expensive. On the other hand, using
subcontracting or lowering production levels to avoid extra inventory may be more cost-
effective in months with lower demand (like June and July).

Capacity Planning
In the food industry, capacity planning is essential since it entails predicting consumer
demand for food goods and making sure the organization has the resources to supply that
demand. In the food business, some of the crucial components of capacity planning
include:

• Production capacity: To ascertain whether it is sufficient to meet the demand for

its products, the food business must evaluate its production capacity. This
entails analysing the manufacturing procedure, locating bottlenecks, and figuring
out whether there are enough people, tools, and supplies available.
• Seasonality: Throughout the year, the demand for food goods might change
dramatically. Food sector capacity planners must take seasonal demand trends into
account and modify their production capacity accordingly.
• Supply chain management: In the food business, capacity planning also entails
keeping an eye on the supply chain to make sure that raw materials are on hand to
fulfil demand for output. To ensure that materials are delivered on time, strong
cooperation with suppliers and distributors is necessary.
• A high level of quality control must be maintained throughout the production
process, according to capacity planners. To ensure constant quality, this involves
keeping an eye on the production process, identifying potential improvement
areas, and taking appropriate remedial action.
 • Compliance with regulations: The food sector must adhere to stringent regulations
pertaining to food safety and hygiene. To prevent legal repercussions, capacity
planners must make sure that the production procedure conforms with these
specifications.
In the food sector, capacity planning is fundamental to ensuring that a company has the
resources to meet customer demand while upholding high standards of quality and legal
compliance. The food business may increase operational efficiency and keep a
competitive edge in the market by controlling production capacity effectively.

Scheduling
Scheduling is a critical aspect of production and operations management. It involves
creating a plan that defines the order of steps necessary to produce a good or service and
figuring out the resources required to finish those steps. Organizations may enhance their
production processes, cut costs, and increase efficiency with the help of effective
scheduling.

Master Production Schedule for the IT Industry

The production schedule for laptops is shown in this MPS sample during an 8-week period. It
covers the expected on-hand inventory at the beginning of each week, the customer orders,
the forecasted demand for the week, the MPS Quantity, and the MPS order receipts. The next
MPS has a one-week lead time. Below, we list the quantity on hand and order policy.

Quantity on Hand= 400 Units

Order Policy= 200 Units

Lead Time= 1 Week

Product: Laptops
 Week Week Week Week Week Week Week Week
1 2 3 4 5 6 7 8

Demand Forecast 200 200 200 200 250 250 250 250

Customer Orders 210 80 40 70 0 0 0 0

Projected on-hand 190 190 190 190 140 90 40 190

Inventory

MPS Quantity 0 200 200 200 200 200 200 400

MPS Order 200 200 200 200 200 200 400

This MPS can be used to help schedule the manufacturing and acquisition of laptop-related
components, such as processors, hard drives, and memory modules. Additionally, it helps
ensure that the business can satisfy client demand while preserving an ideal inventory level
and cutting expenses.

Material Requirement Planning for the IT Industry

This MRP displays the amount of each component required over a 12-week period to make
laptops. It also includes the scheduled receipts, which are the quantities anticipated to be
received each week, the projected available balance, which is the anticipated inventory level
at the end of each week, and the planned order receipts and releases, which specify the
quantity and timing of the components to be ordered and released for production. The gross
requirements for each component are the total amount required to produce the laptops.

This MRP can assist in reducing excess inventory and associated expenses while also
ensuring that the laptop maker has the essential components on hand to satisfy the production
schedule established by the MPS.
 Week Gross Scheduled PAB Planned Order Planned Order
Requirements Receipts Receipts Releases

1 750 0 250 750 0

2 1200 1000 450 450 1000

3 900 750 700 200 750

4 1100 1000 800 300 1000

5 800 750 800 0 750

6 1300 1000 1050 250 1000

7 900 750 1200 50 750

8 1200 1000 950 250 1000

9 1000 750 1200 50 750

10 1400 1000 1150 250 1000

11 1100 750 1600 0 750

12 1500 1500 1600 100 1500

Aggregate Planning for IT Industry

The production schedule for the IT sector for the upcoming 12 months is displayed in this
aggregate planning table. The demand projections for each month are listed in the table
together with the capacity for regular production, overtime production, subcontracting,
beginning and ending inventories, planned production, planned hiring, and planned layoffs.

The greatest number of units that may be produced each month without using any overtime or
outside labour is known as the regular production capacity. Additional production capacity
that can be employed to meet demand if necessary, includes the capacity for overtime work
and subcontracting. The beginning inventory and ending inventory, respectively, describe the
levels of inventory at the start and end of each month.

The forecasted demand, the starting inventory, and the ending inventory are used to calculate
the total number of units to be produced each month, which is represented by the planned
production. The amount of personnel that will be employed or fired in order to satisfy the
production schedule is represented by the planned hire and planned layoff.

The IT sector can use this aggregate planning table to manage inventory levels and associated
expenses while ensuring that it has sufficient production capacity and labour to satisfy
anticipated demand for its products.

Month Demand RPC OPC Subcontracting Beginning Ending Planned

Forecast Capacity Inventory Inventory Production

Jan 1000 800 0 0 100 200 900

Feb 1100 800 0 0 200 300 110

Mar 1300 900 100 0 300 400 1200

Apr 1400 1000 200 50 400 500 1350

May 1500 1100 300 100 500 600 1500

June 1600 1100 400 150 600 700 1600

July 1700 1100 500 200 700 800 1700

Aug 1800 1200 600 250 800 900 1800

Sep 1900 1200 800 350 1000 1100 2000

Oct 2000 1200 800 350 1000 1100 2000

Nov 2100 1300 900 400 1100 1200 2100

Dec 2200 1300 1000 450 1200 1300 2200

 Capacity Planning for IT Industry

The IT industry must use capacity planning to make sure that it has adequate hardware,
software, and human resources to match the demand for its goods and services. The following
are some crucial actions in IT capacity planning:

1. Analyse historical data: Look for trends and patterns in the historical data on supply, demand,
and resource use. You may better grasp the average demand for your goods or services and
the resources needed to supply it with the aid of this analysis.

2. Future demand forecasting: To project future demand for your goods or services, use
previous data. Seasonality, market trends, and shifts in consumer behaviour are just a few
examples of the variables that should be considered in this projection.

3. Calculate the resources needed to meet the demand: Using the demand forecast, calculate the
resources needed to satisfy the demand. Hardware, software, and people are all included in
this.

4. Analyze present capacity: Evaluate your organization's current capacity to see if it can satisfy
the anticipated demand. This involves assessing the capability of your workforce's skills,
hardware, and software systems, as well as their availability.

5. Determine any discrepancies between the anticipated demand and your actual capacity. These
gaps could be caused by a lack of trained people or a limitation of hardware or software
resources.

6. Create a capacity plan: Create a strategy to close the capacity shortfalls. This strategy can
entail investing in new gear or software, recruiting more employees, or outsourcing specific
tasks.

7. Implement the strategy: Put the capacity plan into action by getting the resources required
and adding staff as required.

8. Follow up with regular reviews of the actual demand and resource usage, and make any
adjustments to the capacity plan. By doing this, you can make sure that you can satisfy
customer demand for your goods or services while maximizing resource efficiency and
lowering costs.

Scheduling IT Industry

Three manufacturing lines are used in this example from the IT industry, and the table below
displays the projected production volumes for each line each week. If you can see, if demand
for the goods or services rises, so do the anticipated production volumes.
 The scheduling table often bases itself on the master production schedule and takes into
account things like lead times, production capacity, and readily available resources. It makes
sure that demand and output are appropriately matched and that the resources required to
reach production targets are readily available.

Week Production Line 1 Production Line 2 Production Line 3

1 200 150 100

2 250 200 150

3 300 250 200

4 350 300 250

5 400 350 300

• External factors affecting the Food industry, their analysis and

ranking:

MRP MPS CAPACIT AGGREG SCH

FACT ANALYSIS RANK Y ATE EDU
ORS ING (1 PLANNIN PLANNIN LING
AFFEC being G G
TING the least
FOOD affectin
INDUS g factor
TRY and 6
being
the
most
affectin
g
factor)

Weather Due to the substantial (6) Storms and The Extreme The The
and effects that weather and droughts, demand weather production produ
Climate climate conditions can for for a conditions strategy ction
have on crop yields, the example, product or natural may need strate
availability of raw can have may be disasters to be gy
 materials, and their price, an impact affected might have adjusted to may
the food business is on the cost by an impact account for need
extremely susceptible to and weather on a weather to be
these variables. Extreme availability and company's and climate adjust
weather events and of raw climatic choice to effects as ed to
climate change can materials, circumsta invest in well as the accou
exacerbate supply chain which can nces, new shifting nt for
disruptions and pricing have an necessitat machinery demands of weath
volatility, making it impact on ing or increase the market. er and
difficult for businesses to the total changes production climat
maintain consistent cost of to the capacity. e
supply and demand. materials manufact effect
Companies may need to and uring s as
implement risk inventory schedule well
management techniques levels. to satisfy as the
to lessen the effects of demand. shiftin
weather and climate on g
their company, such as dema
diversifying their sources nds of
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sustainable farming marke
methods, and employing t.
technology to forecast
weather patterns and
schedule their activities
accordingly.
Food Regulations for food (2)
Safety safety, labeling, and
and product quality are quite
Regulati tight, and the food
ons business is heavily
regulated. Regulations
and food safety standards
changes can have an
impact on the sector,
necessitating product re-
formulations and
marketing tactics
adjustments by
businesses to meet the
new criteria. Companies
need to make investments
in quality assurance
procedures, food safety
education, and regulatory
compliance know-how to
manage these changes.
Consum Food firms are investing (5) Consumer Consume Consumer Consumer Consu
er in innovative product health and r health wellness health and mer
Health formulas and marketing wellness and and health wellness health
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companies to use materials and manufactur changing orce's
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need to spend in R&D, the total to meet needs and ments
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effectiveness due to impacted and need global satisfy uling
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Companies need to invest on productio manufactur markets e
in supply chain considerati n e goods in and adhere adjust
management, strategic ons, which schedule various to ments
alliances, and local can have to satisfy parts of the internation to
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Labor Changes in labor laws and (1) The cost The A The Workf
and regulations may have an and productio company's production orce
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ment of the food sector because of labour schedule hire more need to be uling
of the business's reliance for may need staff, invest adjusted to may
on labor. Customers and manufactur to be in training account for need
workers are pressing ing can be adjusted programme labour and to be
businesses to invest in fair impacted in order to s to employmen adjust
labor standards, by labour take into upgrade t ed in
employee benefits, and and account employee considerati order
worker safety measures in employme the abilities, or ons that to
order to create better nt workforc automate may have maint
working circumstances. variables, e's procedures an impact ain
Companies must which can availabilit to cut on the output
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to moral and an impact productiv expenses force's use and
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investing in the training cost of level. by labour needs. overw
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levels. considerati result
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ons to hiccups like traffic of raw materials increase may need y
jams, natural calamities, materials may be production to be chain
or pandemics. Companies can be impacted capacity or adjusted as factor
must employ risk impacted by supply to invest in a result of s can
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reduce the impact of these chain issues, and chain t the
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they can have a which can ing on order to uling
substantial influence on therefore alteration infrastructu fulfil of
the pricing and have an s to the re to ensure market produ
availability of food impact on productio the efficient demands ction
goods. Businesses must the total n plan to movement and make and
engage in contingency cost of guarantee of goods sure the requir
planning, supply chain materials that might be supply e
visibility, and supplier and materials influenced chain can adjust
and logistics partner inventory are by supply sustain the ments
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• External factors affecting the IT industry, their analysis and ranking:

MRP MPS CAPACIT AGGREG SCH

FAC ANALYSIS RANK Y ATE EDU
TOR ING (1 PLANNIN PLANNIN LING
S being G G
AFFE the
CTIN least
G IT affectin
INDU g factor
STRY and 7
being
the
most
affectin
g
factor)

Techn Rapid technical progress (7) Technolog The The Developing Utilizi
ologic can open up new y used in applicatio application efficient ng
al opportunities for the IT inventory n of of production techn
advan sector, but it can also cause manageme technolog technology methods ology
cemen disruption to pre-existing nt systems y in to model through the in
ts company structures. to productio and use of produ
Businesses that can keep up automatica n evaluate technology ction
with these technological lly create planning various to analyse sched
developments are more purchase systems to production and predict uling
likely to succeed. The speed orders produce scenarios market syste
of technological based on schedules based on trends, ms to
advancement, however, can material that are resource consumer cut
make it challenging for requireme optimised restrictions, demand, lead
businesses to keep up, and nts and based on demand and data times,
spending money on research track resources projections, from the priorit
and development can be inventory that are and supply ise
expensive. levels. available capacity chain. output
and limits. in
demand accor
dance
 prediction with
s. client
needs,
and
maxi
mise
equip
ment
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Framework to minimise the effect of External factors

Food Industry

The most suitable framework for the food business may be Master Production Scheduling
because of the perishable nature of food goods and the requirement for prompt delivery to
clients (MPS). For perishable products with short shelf lives, like fresh produce or baked
goods, MPS can assist food industries in planning and managing production schedules.
Businesses may avoid overproduction and waste, cut expenses associated with inventory
holding, and guarantee that goods are delivered to customers on time by anticipating demand
and planning production accordingly. Moreover, MPS can aid in resource optimisation, such
as the efficient use of people and equipment, which is crucial in the food business where
production capacity may be constrained.

While there are various frameworks for managing production and resources in the food
sector, such as MRP, Capacity Planning, Aggregate Planning, and Scheduling Concepts,
MPS may be the best paradigm for perishable food items with limited shelf life. Here are a
few explanations:

• MRP (Material Requirements Planning), which focuses on managing the flow of raw
materials into manufacturing, might not take the perishable nature of finished
products into account. The stock levels of non-perishable raw materials can be
managed using MRP, however the stock levels of perishable finished goods may not
be as easily managed.
• Capacity planning, which is primarily concerned with ensuring that there is enough
manufacturing capacity to fulfil demand, may not take into account the perishable
nature of finished items. Moreover, capacity planning could not be as successful as
MPS in maximising the use of resources, which could lead to the ineffective
deployment of staff and equipment.
• Aggregate planning requires creating a general production strategy that covers a
longer time period, such as a year, but may not be sufficiently detailed to account for
the perishable nature of finished goods. Aggregate planning is useful for managing
 capacity and resources, but it may not be able to provide the level of precision
required for handling perishable items with a limited shelf life.
• Although scheduling and the Just-In-Time (JIT) philosophy can assist reduce waste
and boost productivity, they may not take into account the perishable nature of
finished items. Since JIT and scheduling principles are primarily focused on speeding
production and lowering inventory, they might not be as useful for handling
perishable items with a short shelf life.

In conclusion, while other frameworks can be helpful for managing production and resources
in the food industry, MPS may be the best framework for perishable food products with short
shelf lives due to its capacity to forecast demand, schedule production accordingly, avoid
overproduction and waste, reduce inventory holding costs, optimise the use of resources, and
guarantee timely delivery to customers.

How it reduce the effect of external factors

Manufacturing companies may successfully plan and schedule their production activities with
the aid of the master production scheduling (MPS) process. The influence of external
elements including weather and climate, food safety and regulations, consumer health and
wellness, globalisation, labour and employment, and supply chain disruptions can be lessened
by MPS by incorporating numerous internal and external aspects that can affect production.

• Production can be significantly impacted by the weather and environment,

particularly for companies that depend on seasonal raw supplies. MPS can assist firms
in anticipating potential hiccups and adjusting their production by taking weather
patterns and forecasts into account in their production plans.
• Regulations and food safety are important factors for companies in the food and
beverage industry. MPS may assist in making sure that production procedures adhere
to pertinent laws and standards and that the final products are safe for customers.
• Businesses need to change to meet shifting consumer demands since consumer
worries about their health and fitness are growing. MPS can assist producers in
creating goods that satisfy consumer demands for health and wellness.
• Supply chains are become more complicated as a result of globalisation. To ensure
they can successfully compete in a global market, enterprises can benefit from the
optimisation of their production procedures and supply chain networks by using MPS.
• Production can be impacted by labour and employment concerns, and MPS can assist
manufacturers organise and plan their production activities to make sure they have
enough workers and resources to satisfy demand.
• Last but not least, a variety of reasons, including natural disasters, geopolitical unrest,
or delays in transit, can cause supply chain interruptions. Businesses can use MPS to
predict probable hiccups and put emergency preparations in place to lessen the effect
on output.
Master Production Scheduling, which offers a framework to take these aspects into account
when planning and scheduling production activities, can generally assist manufacturers in
reducing the impact of external factors.

IT Industry
For the IT sector, capacity planning is the best framework. By anticipating demand and
capacity needs, maximising resource use, and coordinating capacity planning with budget
planning, it enables businesses to manage their IT infrastructure and systems. With this
strategy, businesses can prevent bad performance and user discontent, invest in the resources
most important to their operations, eliminate resource waste, and save unnecessary costs.
Capacity planning is essential for the success of IT organisations' applications and services
and helps them offer better customer care.

Capacity Planning is more appropriate for the IT sector than other frameworks like Master
Production Scheduling (MPS), Material Requirements Planning (MRP), Aggregate Planning,
and Scheduling Concepts. These frameworks, which concentrate on managing the production
of tangible goods rather than the supply of software and services, are created for industrial
businesses.

• By monitoring the flow of the materials and resources required for manufacturing,
MPS and MRP are used to plan and manage the manufacture of commodities like
automobiles or furniture. Since the IT sector deals with intangible goods like software
and services and needs a distinct method of capacity management, these frameworks
are not applicable to it.
• Aggregate Planning and Scheduling Concepts, which concentrate on managing the
production of items in batches or by time period, are likewise not as appropriate for
the IT business. The IT sector needs a more dynamic and adaptable approach to
capacity management that can swiftly adjust to shifting demands and requirements,
therefore this method is irrelevant.

In conclusion, because it is specifically created to manage the capacity of IT infrastructure

and systems to support the supply of software and services, capacity planning is the
framework that is best fit for the IT industry. Other frameworks, which are intended for
industrial industries, are less appropriate since they do not take into account the particular
difficulties facing the IT sector.

How it reduce the effect of external factors

Capacity Planning help in the following ways:

 • IT infrastructure and operations can be impacted by technological breakthroughs.
Organizations can remain ahead of the curve by anticipating future technological
advancements and modifying their infrastructure and resources accordingly with the
aid of capacity planning.
• The IT sector may also be affected by the economy. In a difficult economic climate,
capacity planning can assist companies in making the most use of their infrastructure
and resources to maximise revenue.
• The IT business is highly competitive, and capacity planning can help organisations
stay competitive by making sure they have the necessary infrastructure and resources
to fulfil shifting client needs.
• Government regulations may have an impact on the IT sector, and capacity planning
can assist businesses in making sure that their operations adhere to all applicable laws
and requirements.
• The IT sector may also be impacted by demographic, social, and cultural issues, and
capacity planning can assist businesses in creating and deploying applications and
services that are catered to particular user groups.
• Last but not least, environmental concerns like climate change can have an impact on
IT operations, and capacity planning can assist businesses in lowering their carbon
footprint by maximising their infrastructure and resource usage.

Ultimately, by offering a framework to take these issues into account when managing
resources and equipment, capacity planning can assist the IT industry in lessening the
influence of external factors. Organizations may secure company continuity and preserve
their competitive edge in a fast evolving global market by foreseeing potential hazards and
creating backup plans.

Strategy formulation and evaluation

Food industry

There are several strategies that the food industry can use to reduce the impact of external
factors, such as climate, weather, and economic conditions, on their operations. These
strategies include:

• Diversification: Diversifying the products and supply chain sources can help to
reduce the impact of external factors such as weather or economic conditions on a
business. This can include sourcing products from multiple suppliers or regions, as
well as offering a diverse range of products that are less vulnerable to the impact of
external factors.

• Research and development spending can aid organizations in innovation and

environment adaptation. This can involve creating new goods that are less susceptible
 to crop failures brought on by weather or spending money on cutting-edge technology
that boost productivity and sustainability.

• Sustainable practices can help to lessen the impact of climate-related disruptions on

the food business by minimizing waste, utilizing renewable energy sources, and
investing in sustainable agriculture. Long-term cost savings and improved
environmental sustainability are both possible benefits of this.

• Collaboration: By working together with suppliers, other companies, and the

government, the food industry can lessen the effects of outside forces. Collaboration
may entail exchanging best practices, working together on research and development
projects, and creating legislation and regulations that support the sector.

• Risk management: By creating and putting into place a risk management plan, firms
may foresee and get ready for external events that might have an impact on their
operations. Creating backup plans for supply chain interruptions, weather-related crop
failures, and other potential external business-impacting disasters are examples of
this.

Overall, by using these techniques, the food business can better position itself for long-term
success, increase sustainability, and lessen the influence of external influences on its
operations.

Critical Evaluation

• Increasing product and supply chain diversity can be a good approach to lessen the
influence of outside forces on the food business. Diversification may not be practical
for all firms, though, as it can raise expenses and complicate operations. Moreover,
not all items or sources in the supply chain may be amenable to diversification, which
could reduce its usefulness.

• Innovation: Putting money into R&D can assist companies in coming up with new
ideas and adjusting to changing market conditions. Innovation can be expensive,
though, and it may not always produce positive results. Moreover, innovation might
not move quickly enough to keep up with the quickly altering external conditions,
which could reduce its efficacy.
 • Sustainable practices: By implementing sustainable practices, the food industry's
vulnerability to climate-related disturbances can be minimized. Sustainable business
strategies, however, can be expensive to execute and aren't necessarily practical for all
types of enterprises. Furthermore, the effects of sustainable behaviors could not be felt
right once, which might restrict their efficiency in the near run.

• Collaboration: Reducing the influence of outside variables on the food sector can be
accomplished through collaboration. Due to rivalry and divergent goals, however,
teamwork may also be difficult to accomplish. Collaboration may also result in
unsuccessful outcomes occasionally, which may reduce its usefulness.

• Risk management: Planning ahead for external factors that might affect a company's
operations by creating and putting into place a risk management strategy can help.
Although it may not always be successful in reducing the impact of outside factors,
risk management may also be expensive to implement. For smaller companies with
fewer resources, risk management may also be difficult to implement.

IT Industry

The IT sector can employ a number of tactics to lessen the influence of external elements on
their operations, such as monetary situations, technological advancements, and cybersecurity
threats. These tactics consist of:

• Agile development: By using an agile development technique, IT organizations may

create and deliver new software and services more quickly while still being able to
quickly react to changing situations. This may lessen the industry's vulnerability to
outside influences.

• Innovation: By investing in R&D, IT organizations can keep on top of technology

advancements and adjust to shifting market conditions. This may entail creating fresh
goods and services that are more adapted to changing consumer demands and industry
trends.

• Risk management: By creating and putting into place a risk management strategy, IT
businesses may better foresee and prepare for external events that might have an
influence on their operations, such as cybersecurity attacks or shifts in the business
environment. Implementing security procedures and backup plans in case of data
breaches or other disruptions might be part of this.
 • Cloud computing: By implementing cloud computing technology, IT businesses can
reduce the influence of outside factors on their business processes. More flexibility,
scalability, and cost savings are possible with cloud computing, which can aid
businesses in quickly adapting to changing conditions and reducing their reliance on
physical infrastructure.

• Collaboration and partnerships: By collaborating with other businesses and sector

partners, IT organizations can lessen the influence of outside influences on their
operations. Collaboration may entail exchanging best practices, working together on
research and development projects, and creating legislation and regulations that
support the sector.

Critical Evaluation

• Agile development: Due to its ability to quickly react to shifting market conditions
and client demands, agile development is a well-liked method in the IT sector. Agile
development, however, could also result in a lack of attention being paid to long-term
planning and may not be appropriate for all projects. Also, some businesses may find
it difficult to find the talent and experience necessary for agile development.

• Innovation: Given how quickly technology is developing, innovation is a crucial

business strategy for the IT sector. Nevertheless, innovation can be expensive and
time-consuming, and not all ideas will produce positive results. Furthermore,
innovation could not always move quickly enough to keep up with the changing
external conditions.

• Risk management is a key tactic used by the IT sector to get ready for outside
influences like cybersecurity attacks or shifting economic conditions. Yet, creating
and putting into practise a risk management plan might take time, be expensive, and
not always be successful in reducing risks.

• Cloud computing: Because it offers better flexibility, scalability, and cost savings,
cloud computing is a well-liked method in the IT sector. Yet, relying heavily on the
cloud might raise security and privacy issues, and it might not be appropriate for all
kinds of IT initiatives.
 • Collaboration and partnerships: Collaboration and partnerships can help IT
organizations lessen the influence of outside influences on their operations. But,
because of rivalry and divergent interests, teamwork can also be difficult to put into
practice. Collaboration may also not always result in positive results.

Conclusion

We can conclude that as food is perishable and requires fast delivery, Master Production
Scheduling (MPS) is a framework that is appropriate for the food business. Planning and
monitoring production schedules, predicting demand, resource optimisation, and lessening
the effects of outside factors are all made easier with the aid of MPS. The greatest framework
for the IT sector is capacity planning, which helps organizations manage their IT systems and
infrastructure by forecasting demand and capacity requirements, maximising resource
utilisation, and integrating capacity planning with budget planning.