Certified Supply Chain Professional (CSCP) Practice Exam

What role does the Master Production Schedule (MPS) serve between sales and operations?

1. Acts as an informal communication tool

2. Functions as a flexible guideline for production

3. Acts like a contract between sales and operations

4. Provides insights into customer preferences

The correct answer is: Acts like a contract between sales and operations

The Master Production Schedule (MPS) serves as a crucial link between sales and operations, functioning like a contract that aligns both departments on production priorities and commitments. This alignment is essential for ensuring that production capabilities meet customer demand while also adhering to inventory levels and resource availability. The MPS details what is to be produced, in what quantities, and when, establishing clear expectations for the production team regarding what they need to deliver and when. This defined framework allows the sales team to confidently communicate with customers about delivery timelines and product availability based on the commitments outlined in the MPS. It ensures that both sales and operations have synchronized objectives, reducing the risk of misunderstandings or misalignments that can lead to lost sales opportunities or overproduction. While the MPS does involve communication, it is more formal and structured than merely being an informal tool. It also sets specific guidelines, but it's not typically described as flexible; rather, it is formulated based on demand forecasts and resource planning. Although the MPS can provide useful insights into customer preferences indirectly through the sales forecasts it is based on, its primary role does not focus on gathering or analyzing customer insights. Thus, it is best understood as a binding agreement that brings together sales and operations to meet business goals effectively