Question

Question 4 (4 points) This shows product availability: S&OP MRP Inventory forecasts MPS customer due dates Question 5 (4 points) The amount of time represented by each time period in an MPS plan must be equal. True False Question 6 (4 points) ATP uses the MAX(forecast, customer orders) True False Next Page Page 1 of 7 a89

Answer 1

Question 4:

MRP

Explanation- MRP ensures product availability. MRP is based on dependant demand wherein a product is manufactured due to the demand or need to produce the product; it ensures availability of materials for planned production and customer delivery. On the other hand, MPS is based on direct demand wherein the forecast is purely based on customer demand.

Question 5:

False

Explanation- MPS is plan for individual commodities. These individual commodities are produced in different time periods such as production, staffing, inventory, etc. These time periods are not equal as their functions are completely different from each other.

Question 6:

True

Explanation- In ATP calculation, maximum of forecast and customer orders are considered for demand.