The result of disaggregating the aggregate operations plan is the:
A. marketing plan.
B. production plan.
C. rough-cut capacity plan.
D. master production schedule.
E. material requirements plan.
The correct answer and explanation is :
Correct Answer:
D. Master Production Schedule (MPS)
Explanation:
The Aggregate Operations Plan (AOP) is a high-level plan that balances supply and demand by determining the overall production levels for a company over a specific period, typically spanning several months to a year. This plan provides guidance for production, workforce levels, inventory, and subcontracting to meet expected demand.
When the AOP is disaggregated, it breaks down into more specific plans that guide detailed operational decisions. The immediate output of this disaggregation process is the Master Production Schedule (MPS).
Why the Master Production Schedule (MPS) is the Correct Answer?
- Breaks Down Aggregate Plans into Specific Items:
- The MPS translates the high-level AOP into specific production quantities for individual products or product families over shorter time horizons (typically weekly or monthly).
- Instead of broad categories of products, MPS specifies exact units of finished goods to be produced.
- Links Aggregate Planning to Detailed Scheduling:
- MPS serves as a bridge between long-term strategic planning (AOP) and more detailed production and material planning processes like Material Requirements Planning (MRP).
- Guides Resource and Capacity Planning:
- It helps in managing workforce levels, machine capacity, and inventory requirements to ensure smooth production without overloading resources.
- Influences Downstream Processes:
- The MPS provides input for Material Requirements Planning (MRP), which further breaks down the production plan into specific raw material and component requirements.
Why the Other Options are Incorrect?
- A. Marketing Plan – This is a separate function focusing on sales, promotions, and market strategies rather than production schedules.
- B. Production Plan – The production plan is broader and aligns with the AOP. The MPS is a more detailed and actionable schedule derived from it.
- C. Rough-Cut Capacity Plan – This is used to verify if the MPS is feasible based on available resources.
- E. Material Requirements Plan (MRP) – The MRP is derived from the MPS and focuses on material procurement.
Thus, the Master Production Schedule (D) is the correct answer.