CPIM Practice Exam

What characterizes a good Master Production Schedule (MPS)?

1. A document reflecting only past performance data

2. An accurate reflection of what is planned to be produced

3. A summary of all supplier commitments

4. A general overview of company sales trends

The correct answer is: An accurate reflection of what is planned to be produced

A good Master Production Schedule (MPS) is characterized by being an accurate reflection of what is planned to be produced. The MPS serves as a critical tool in supply chain management, as it details the quantities of finished goods that are to be produced in specific time periods. This accuracy is essential for aligning production plans with demand forecasts and customer orders, thereby helping to ensure that resources are allocated effectively and that customer service levels are met. An MPS ultimately drives the entire production process, influencing purchasing, inventory management, and capacity planning. It is vital that the MPS not only reflects realistic production capabilities but also aligns with market demand to avoid overproduction or stockouts. Consequently, focusing on historical data, supplier commitments, or general sales trends does not provide the necessary precision or clarity for production planning purposes as effectively as a clear representation of planned production activities.