Master production scheduling (MPS) involves long term capacity planning that typically covers a time horizon of one to three years. True False
The correct answer and explanation is :
False.
Master Production Scheduling (MPS) typically involves medium-term planning rather than long-term capacity planning. The time horizon for MPS usually ranges from a few weeks to several months, often extending up to one year at most, depending on the industry and product type.
Explanation:
Master Production Scheduling (MPS) is a detailed plan that outlines what products need to be produced, in what quantities, and when they should be completed to meet customer demand. It is a crucial component of manufacturing and supply chain management as it bridges the gap between strategic business planning and shop floor execution.
MPS is distinct from long-term capacity planning, which typically spans one to three years and focuses on high-level decisions such as facility expansion, workforce planning, and major equipment investments. Long-term capacity planning aligns with strategic business objectives and ensures that the organization has adequate resources to meet projected demand.
In contrast, MPS operates on a shorter time frame, typically covering anywhere from a few months to a year, depending on factors like industry dynamics, production complexity, and lead times. It takes inputs from demand forecasts, customer orders, inventory levels, and resource availability to create a feasible production plan.
Key Differences:
| Aspect | MPS | Long-term Capacity Planning |
|---|---|---|
| Time Horizon | Weeks to months (up to 1 year) | 1 to 3 years |
| Focus | Scheduling specific products | Expanding production capacity |
| Decision Level | Tactical | Strategic |
| Output | Detailed production schedule | Workforce, equipment, facility planning |
Since MPS is more tactical and focused on short to medium-term scheduling rather than long-term capacity expansion, the statement that MPS covers a time horizon of one to three years is false.