The relationship between the aggregate plan and Master Production Schedule (MPS)is:
A) The aggregate plan balances the plant's capacity with demand and the MPS translates this plan into numbers of specific products in time frames
B) The aggregate plan is for 6 months and the MPS is for 3 months
C) The aggregate plan uses simulation and the MPS uses regression analysis
D) The MPS calculates labor time and the aggregate calculates labor and material
E) MPS starts with macro units and the aggregate plan starts with micro units

Question

Quizplus · Accepted Answer

The aggregate plan is an intermediate-term plan that balances the production capacity with demand, whereas the MPS is a more detailed short-term plan that translates the aggregate plan into specific products and timeframes. Therefore, option A accurately describes the relationship between the two plans. The other options are incorrect as they either describe incorrect timeframes, unrelated techniques or incorrect methods for calculating labor and material.

The Relationship Between the Aggregate Plan and Master Production Schedule