C) What product is to be made, and when

The master production schedule (MPS) is an important tool used in production planning and control. It is a detailed plan that specifies the quantity and timing of the products to be manufactured, based on the demand forecast and available resources. The correct answer to this question is option C, which states that the master production schedule specifies what product is to be made, and when.

1. Purpose of the Master Production Schedule:
The primary purpose of the master production schedule is to ensure that the production process is aligned with the demand for the final product. It helps in maintaining a balance between customer demand and production capacity.

2. Product Identification:
The MPS identifies the specific products that are to be manufactured. It includes information such as the product code, description, and other relevant details.

3. Timeframe:
The master production schedule also specifies the time period during which the production is planned. It provides a detailed timeline for each product, indicating when it should be started and completed.

4. Production Quantities:
Another crucial aspect of the MPS is the determination of production quantities. It specifies the number of units to be manufactured for each product during a specific time period. This information is based on the demand forecast, taking into consideration factors such as customer orders, inventory levels, and market trends.

5. Resource Planning:
While the MPS primarily focuses on the product and timing aspects, it indirectly influences resource planning. By providing information on the products to be manufactured and their quantities, it helps in estimating the required resources such as raw materials, labor, and equipment. However, the MPS does not directly specify financial resources or labor hours required for production, as mentioned in options A and D.

In conclusion, the correct answer to the question is option C. The master production schedule specifies what product is to be made, and when, ensuring that production is aligned with customer demand and available resources.