ITPEC FE Morning April 2022 Question 71
ITPEC FE Morning April 2022 — Question 71 of 80
The MRP process flows: Master Schedule → Gross Requirements → Net Requirements → Order Quantity → Arrangement Plan → Instructions.
Net requirements answer: "How much do we actually still need to order?" This is calculated as:Net requirements = Gross requirements − Inventory on hand − Scheduled receipts
To perform this subtraction, you need to know the current inventory status — how much stock is already available, what orders are already incoming, and what is currently being processed.
Why not others:
- (a) Bill of materials feeds the gross requirements step (exploding the product structure to find total component needs), not the net calculation
- (c) Ordering policy (lot sizing, safety stock) is applied at the order quantity step — after net requirements are known
- (d) Standard schedule (lead time, completion period) is used at the arrangement plan step to determine timing of orders
Key rule: Net requirements = Gross − Inventory; therefore inventory status is the required input at that specific step.
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