ITPEC IP October 2018 Question 87

Source exam: ITPEC IP October 2018Topic: Business Industry

ITPEC IP October 2018 — Question 87 of 100

MRP improves a situation where required-material and quantity information is insufficient or incorrect. It uses the master production schedule, bill of materials, inventory records, and lead times to calculate what materials are required, how many are needed, and when orders should be released.

Answer (b)

Why not others:
- drawing versions and design histories are managed by PDM or document management

- excessive design-change requests require design or change-process improvement

- production-equipment cost for high-mix work is not solved by material requirements calculation

Key rule: MRP converts planned production into time-phased dependent demand for components and materials.

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