The ____ is an important input to MRP applications which includes a list of all raw materials and subcomponent demands.
A) bill of raw materials (BORM)
B) bill of materials (BOM)
C) economic order quantity (EOQ)
D) convenient order quantity (COQ)

Question

Quizplus · Accepted Answer

The bill of materials (BOM) is a comprehensive list of all raw materials, parts, assemblies, and subassemblies needed to produce a finished product. It is a critical input to MRP applications as it provides a breakdown of all the components required for production, allowing the system to calculate material requirements and plan for procurement or production activities. The bill of raw materials (BORM), on the other hand, refers specifically to the raw materials needed for production and is a subset of the BOM. Economic order quantity (EOQ) and convenient order quantity (COQ) are inventory management concepts that are not directly related to MRP.

The ____ Is an Important Input to MRP Applications Which