Which of the following statements about Materials Requirements Planning (MRP) is

Question

Which of the following statements about Materials Requirements Planning (MRP) is TRUE?

Select one:

a. MRP explosion occurs when the system is bombarded with too many orders to schedule at one time.

b. Among the four core processes of an organization that link activities within and across firms in a supply chain, the MRP interacts with all of them either through its inputs or outputs.

c. MRP gross requirements for a parent item are equal to the planned order releases of its components.

d. Purchasing orders are inputs to the MRP system.

Explanation / Answer

Ans - b. Among the four core processes of an organization that link activities within and across firms in a supply chain, the MRP interacts with all of them either through its inputs or outputs.

Explanation: -

MRP gross requirements are the total demand derived from all parent production plans and depend on the planned order releases of its immediate parents. The key inputs to an MRP system are the bill of materials, master production schedule, and inventory records. Among the four core processes of an organization that link activities within and across firms in a supply chain, the MRP system interacts with all of them either through its inputs or outputs.

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