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welcome to the video on master production schedule in this video we will look at an example of how to create the mps record in this example we have taken item x y z we have been given that the minimum order quantity to be manufactured is 60 units at one shot and the lead time to manufacture the item is two weeks we have also been given that the beginning inventory that is inventory before week one is 35 units now we have week one till week eight and we have been given the forecast for the item and the customer orders booked for the item and we need to put together the mps plan so what that means is when is the mps quantity required to be received by this manufacturing unit and in order to do that when does the company require to start the production so lets first identify the projected on hand quantity for each of these weeks so lets look at the formula for calculating projected on and quantity so the formula for finding out the projected on hand inventory at the end of a period is