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Certified in Production and Inventory Management Questions 91–95 (page: 20)

The MPS is a plan for manufacturing; it reflects the needs of the marketplace and the capacity of manufacturing and forms a priority plan for manufacturing to follows: The MPS forms a vital link between sales and production as follows:

To maintain the desired level of customer service by maintaining finished-goods inventory levels or by scheduling to meet customer delivery requirements.

1. To make the best use of material, labor and equipment.
2. To maintain inventory investment at the required levels.

These are the objectives of:

The step for preparing MPS is/are:

Which of the following criteria is used to judge MPS?

Suppose company manufactures paint from a base color and adds tints to arrive at the final color. Suppose there are 10 tints and a final color is made by mixing any three of them with the base. There are 70 possible colors (10*9*8=720). Forecasting and planning production for 720 items is a difficult task. It is much easier if: