Master Production Scheduling Converts Strategic Plans into a Time-Phased Plan

question 99

True/False

Master production scheduling converts strategic plans into a time-phased plan that indicates exactly when each SKU should be made and how much should be run.

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Definitions:

Direct Materials Inventory

Raw materials that are directly used in the production process and can be easily traced to the finished product.

Finished Goods Inventory

The stock of completed products that are ready to be sold but are still in inventory.

Cost of Goods Sold

Expenses directly related to manufacturing goods that a firm sells.

Finished Goods

Merchandise that has been through the manufacturing phase and is now ready for customer purchase.