Question 21 PROVIDE SUPPORT FOR YOUR ANSWER Which of the following statements ab

Question

Question 21 PROVIDE SUPPORT FOR YOUR ANSWER

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

Select one:

a. Purchasing orders are inputs to the MRP system.

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

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

d. 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

21

Explanation / Answer

I support option D

d. 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 is focusing on meeting the objetives like ensure materials for production and produts for the required customers as per the oreders.it also helps in keeping the inventory level as low as possible.Optimise production and purchase activities

It helps in integrating marketing, financing, engineering and human resource ( the four core proces of an organisation). It works backward from the production plan and also check the market demand for the particular product.As per the demand production is linged and materials are purchased. So it indirectly integrates market, material purchasing ( finance) , production ( operations) and also gave indictaion for required man powers (human resource). So an extensive MRP is a good control management level tool that enables to give transperency in the whole organisational process.

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