How does the FAS differ from the MPS?

The correct choice highlights that the FAS (Forecasted Available to Sell) uses a shorter-term planning period that focuses on customer orders. The primary purpose of the FAS is to provide a snapshot of availability for the near term, directly linked to actual customer orders. It emphasizes immediate response to incoming orders to manage the supply effectively in the short term.

In contrast, the MPS (Master Production Schedule) is designed to go beyond just customer orders and encompasses both forecasted demand and actual orders. It takes a longer-term view in planning production so that the company can align its resources and capacity with both expected sales and inventory management.

The distinction in planning horizons and focus—whether directly on customer orders or broader forecasted demand—marks the fundamental difference that reinforces the role of each scheduling process within an organization's operational framework.