ITPEC FE Morning October 2018 Question 74
Which of the following is a characteristic of MRP?
Explanation
Component requirements calculated from the production plan — MRP explodes the plan into the parts it needs.
Material requirements planning starts from the master production schedule (how many of each product, and when). Using the bill of materials, it multiplies out the components each product needs, subtracts inventory on hand and on order, and offsets by lead time, giving what to order or make and when.
Answer (b)
Why not others:
- •(a) — doing development, design and production preparation in parallel is concurrent engineering
- •(c) — starting production only after a customer's order arrives is make-to-order (build-to-order) production
- •(d) — issuing work and transport instructions on a sheet is the kanban method used in JIT production
Key rule: MRP is plan-driven: production plan + bill of materials + inventory give the net requirement for each component.
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