CPIM Practice Exam

What is one primary objective of a master production schedule?

1. Maximize equipment utilization

2. Keep the sales department satisfied

3. Maintain targeted customer service levels

4. Minimize inventory investment

The correct answer is: Maintain targeted customer service levels

A primary objective of a master production schedule is to maintain targeted customer service levels. This involves planning and controlling the production of goods to ensure that they are available when and where customers need them. By aligning production schedules with customer demand, the organization can enhance customer satisfaction through timely delivery and availability of products. The master production schedule acts as a crucial link between demand forecasting and production planning, enabling companies to fulfill orders efficiently while minimizing the risk of stockouts. This not only helps build a loyal customer base but also supports the overall business strategy by ensuring that service levels meet market expectations. Focus on customer service levels underscores the importance of integrating production activities with market needs to sustain competitiveness and profitability.