Answer:
The master production schedule determines which end items are to be produced, when, and how many.
Step-by-step explanation:
The statement is true. The master production schedule (MPS) determines the specific end items that need to be produced, as well as when and how many. It serves as a blueprint for the production process by providing a detailed plan for meeting customer demands and managing inventory.
For example, let's say a company manufactures bicycles. The MPS will outline the schedule for producing each model of bicycle, specifying the quantity to be produced and the time frame in which they need to be completed. This allows the company to effectively allocate resources, plan production activities, and ensure timely delivery to customers.
Every production decision made in a company needs to align with the broader economic questions of what should be produced, how it should be produced, and for whom it should be produced. When a new Production Possibilities Frontier (PPF) is developed, often due to improved technology and resources, it enables a company to reassess its production schedules and capacities. Understanding the MPS is crucial for effective production planning and control, as it helps ensure efficient utilization of resources and meet customer demands in a timely manner.