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CMA Intermediate · Operations Management and Strategic Management · Operations Planning

In the hierarchy of operations planning, which of the following correctly places the Master Production Schedule (MPS) relative to aggregate planning and material requirements planning (MRP)?

The MPS disaggregates the aggregate plan into specific end items and time periods, and it feeds MRP. Aggregate planning comes first at family level, the MPS follows at product level, and MRP then derives component and material requirements from the MPS.

  1. AMPS disaggregates the aggregate plan into specific end items and timings, and serves as the main input to MRPCorrect
  2. BMPS is prepared after MRP to decide the quantity of raw materials to be ordered
  3. CMPS is prepared before aggregate planning and fixes the total workforce for the year
  4. DMPS replaces the aggregate plan and is prepared in monthly totals for product families

Explanation

Aggregate planning works with product families over a medium-term horizon. The MPS breaks this plan into specific end items by period. MRP then uses the MPS to compute component and material requirements, so the MPS sits between the two.

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