The Master Production Schedule is driven by independent demand. A) True B) False

Understand the Problem

The question is asking whether the statement about the Master Production Schedule being driven by independent demand is true or false. The Master Production Schedule (MPS) typically aligns more with dependent demand in a manufacturing context, where it is influenced by forecasted sales and production schedules. Understanding the concepts of independent and dependent demand in production planning is essential for answering this question.

More Information

The Master Production Schedule (MPS) deals with independent demand, often derived from customer orders or sales forecasts. This means it plans for products that are directly purchased by customers, as opposed to dependent demand items like parts or components.

Tips

A common mistake is confusing independent demand with dependent demand. Independent demand is for finished products bought by customers, while dependent demand is for components and raw materials required to produce those finished goods.

Sources

• MPS involves independent demand - Wolters Kluwer - wolterskluwer.com