Question

The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?

Answer 1

Answer:

The correct answer is letter "B": Master production schedule.

Explanation:

A Master Production Schedule (MPS) is a detailed plan that outlines what products and in which quantities products should be manufactured over a certain period. This schedule contrasts the Aggregate Production Plan (APP) which has a broader scope in business production not only for a product but for a product family usually in large plants.

MPS planning horizon is shorter than the APP but easier to understand assuming the demand for the product is constant. The MPS lead time to produce a good tends to be longer than the APP.