Materials Requirements Planning (MRP)

The list of quantities of components, ingredients, and materials required to produce a product is the

• Purchase Order.

• Bill of Materials.

• Master Schedule.

Businesses use MRP systems, which are

• subsets of supply chain management systems

• to efficiently manage inventory

• schedule production and deliver the right product—on time and at optimal cost

• All are correct

Material Requirements Planning (MRP) is understand inventory requirements while

• balancing supply and supplier.

• balancing supply and demand.

• balancing material and demand.

MRP is a computerized

• trial and error schedules.

• volume and timing of the end products to be made.

• inventory control and production planning system.

Which is not a benefit of MRP?

• Better response to customer orders

• Faster response to market changes

• High cost to implement

• Improved utilization of facilities and labour

Which is not a MRP input?

• Demand

• Bill of materials

• Master production schedule

• Calculate needed required materials

__________ forms the main input to materials requirements planning and contains a statement of the volume and timing of the end products to be made.

• Master Production Schedule (MPS)

• Material Requirement Planning (MRP)

• Bill of Material (BOM)

Which is not an inventory record?

• Item Master File

• Transaction File

• Location File

• Available Quality

An organization need to make sure that correct inventory availability, time to complete a subassembly, waste calculations and lead-times from vendors. Otherwise, production schedule will be inaccurate.

• True

• Fales

MRP processes is_____

• Bill of material - Netting inventory - Lot sizing - Time requirements

• Lot sizing - Netting inventory - Bill of material - Time requirements

• Netting inventory - Bill of material - Lot sizing - Time requirements