ITPEC IP October 2023 Question 86

Source exam: ITPEC IP October 2023Topic: Business Industry

ITPEC IP October 2023 — Question 86 of 100

MRP improves the calculation of what materials are needed, in what quantities, and when they must be ordered or produced. It expands a master production schedule through the bill of materials, subtracts available inventory and scheduled receipts, and applies lead times to calculate net requirements. This directly addresses complex material quantities and ordering errors.

Answer (b)

Why not others:
- (a) requires drawing or product-data management

- (c) concerns engineering change management and production design stability

- (d) concerns production-equipment strategy and high-mix manufacturing cost

Key rule: MRP solves time-phased material planning based on production demand, bills of materials, inventory, and lead times.

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