CPIM Practice Exam

What is a key characteristic of the master production schedule?

1. It facilitates forecasting

2. It works with families of products

3. It is an agreement between production and sales departments

4. It cannot be used for order promising

The correct answer is: It is an agreement between production and sales departments

The master production schedule (MPS) plays a crucial role in aligning production goals with sales forecasts, essentially acting as a bridge between the production and sales departments. The MPS outlines what products need to be produced, in what quantities, and by when, making it essential for coordinating these two vital functions within a company. When the MPS is established, it serves as an agreement that helps ensure that production capabilities meet sales expectations. This synchronization allows for better resource allocation, efficient inventory management, and improved customer satisfaction, as production can be planned to meet anticipated demand adequately. In relation to the other options, while the MPS can aid in forecasting, it is not its primary purpose. Additionally, it typically focuses on individual products rather than families of products, which are usually managed through different methodologies. The concept of order promising is not directly tied to the MPS itself, as it relies on a more detailed planning and scheduling process. Overall, recognizing the MPS as a vital agreement between production and sales highlights its significance in supply chain management.