1. Which of the following is true of a master production schedule (MPS)?
a. Its input is obtained from the materials requirements planning.
b. It projects the requirements for the individual parts based on the demand for the finished goods.
c. Its primary output is a time-phased report for scheduling raw materials purchase.
d. It provides a means for evaluating alternative schedules in terms of capacity requirements.
2. A company currently has 100 items in inventory. The demand for the next four months is 500, 800, 900, and 300 units. Determine the monthly production rate if a level strategy is selected with the goal of ending the fourth month with 400 units in inventory.
a. 500 units/month
b. 900 units/month
c. 1100 units/month
d. 700 units/month