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CMA Intermediate · Operations Management and Strategic Management · Operations Planning

Which statement about the time fences used in a Master Production Schedule is correct?

The demand time fence is the near-term period in which the MPS is frozen, so changes are difficult or costly. Materials and capacity are already committed, therefore alterations inside this window need special approval, while changes beyond the fence are easier.

  1. AChanges inside the demand time fence are freely accepted because customer orders are uncertain
  2. BThe demand time fence is the period in which the MPS is frozen and changes are difficult or costlyCorrect
  3. CTime fences apply only to aggregate plans and not to the MPS
  4. DThe planning horizon of the MPS is always shorter than the production lead time

Explanation

The demand time fence covers the near term where the MPS is largely frozen because material and capacity are already committed. Changes there disrupt production, so they need management approval and are costly.

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