ITPEC FE Morning October 2021 Question 72
Topic: Business Industry
Which of the following performs its processing according to steps (1) through (3)?
(1)Based on the types, quantities, and the parts list of the product planned to be manufactured during a fixed period of time in the future, the required quantity of components is calculated.(2)The net order quantity of each component is calculated from the amount of inventory that can be allocated.(3)The ordering time of the components is determined while considering the manufacturing and procurement lead time.
Explanation
MRP (Material Requirements Planning) — it turns the production plan into component orders: how many, net of stock, and when.
The three steps are exactly the MRP calculation:
- •Gross requirement: explode the production plan through the parts list (bill of materials) into the quantity of each component
- •Net requirement: subtract the inventory that can be allocated to get the quantity to order
- •Order timing: set the order date back from the date needed by the manufacturing or procurement lead time
Answer (d)
Why not others:
- •(a) CAD — computer-aided design of products and drawings; it computes no material quantities
- •(b) CRP — capacity requirements planning checks whether the workload from the plan fits the capacity of machines and workers, not how many parts to order
- •(c) JIT — a production approach that makes and delivers only what is needed when needed, pulled by kanban from the next process, not a calculation from the parts list
Key rule: Parts list plus production plan, minus inventory, offset by lead time is MRP; comparing load with machine and labour capacity is CRP.
Business Industry · AI-written, may contain errors
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