5. Various MPS practices were discussed in class. From the following statements,

Question

5. Various MPS practices were discussed in class. From the following statements, identify which is false. -ar-Backward loading refers to the practice of allocating capacity to an order working from its due date b. A "level" MPS attempts to utilize varying employment levels (or possibly employment utilization c. A "chase" or "matching" MPS attempts to equalize production and demand rates in each production d Forward loading refers to the practice of allocating capacity to an order working from the present back towards the present time. rates) to absorb fluctuations in demand planning period. time into the future given lead time requirements. The two broad objectives of a MPS are to meet demand and to minimize costs.

Explanation / Answer

Question 5:- Various MPS practices were discussed in class. From the following statements, identify which is false.

Answer:- (c) A "chase" or "matching" MPS attempts to equalize production and demand rates in each production planning period.

The reason being chase strategy adjusts output rates or work-force level to mach the demand over the planning horizon without using anticipatory inventory or under-time. Chase strategy can be accomplished through hires, layoffs, over-time and extra shifts. So the given statement is false.

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