How would a master production schedule (MPS) be used In an assemble-to-order (ATO) manufacturing environment?

How would a master production schedule (MPS) be used In an assemble-to-order (ATO) manufacturing environment?
A . The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received.
B . Subassemblies are scheduled in the MPS when the customer order is received, and production can start.
C . Typically, the MPS is not used in companies using an ATO manufacturing strategy.
D . Often In an ATO environment, the MPS is created once a year and only revised if a product is discontinued.

View Answer

Answer: A

Explanation:

In an assemble-to-order (ATO) manufacturing environment, the MPS is used to plan subassemblies and components that have long lead times or high demand variability. These subassemblies and components are produced and stocked in anticipation of customer orders. The end items are only scheduled in the MPS when a customer order is received, and they are assembled from the available subassemblies and components. This reduces the lead time and inventory for the end items, while increasing the flexibility and responsiveness to customer needs. ATO is a hybrid strategy between make-to-stock (MTS) and make-to-order (MTO).

References: =

CPIM Exam Content Manual, Module 4: Supply, Section 4.1: Master Production Schedule, p. 14 Manufacturing Planning and Control for Supply Chain Management, Chapter 8: Master Production Scheduling, Section 8.3: Master Production Scheduling in Different Environments, pp. 191-192