ITPEC FE Morning October 2018 Question 74

Source exam: ITPEC FE Morning October 2018Topic: Corporate & Legal

ITPEC FE Morning October 2018 — Question 74 of 80

MRP (Material Requirements Planning) — calculates component needs from a production plan

MRP takes a standard production plan (Master Production Schedule) and a Bill of Materials (BOM) to determine the quantity and timing of required components and materials.

Correct answer: b) The number of required components is calculated based on the standard production plan of a product — this is the core function of MRP: exploding a finished-product schedule into component-level requirements.

Why not others:
- a) Performing development, design, and production preparation simultaneously describes concurrent engineering, not MRP.

- c) Starting production only after receiving a customer order describes build-to-order or JIT (Just-In-Time) manufacturing.

- d) Using worksheets for work and transport instructions describes the Kanban system (part of lean/Toyota Production System).

Key rule: MRP = plan-driven calculation of what materials are needed, how many, and when, based on the production schedule and product structure (BOM).

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