The MRP process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements is referred to as
A)cycle counting.
B)lot sizing.
C)exploding.
D)netting.

Question

Quizplus · Accepted Answer

The MRP process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements is referred to as netting. Cycle counting is a method of inventory management where a small subset of inventory is counted on a regular basis. Lot sizing refers to the process of determining the optimal quantity for ordering or producing a product. Exploding refers to the process of using the bill of materials to calculate the materials needed to produce a product.

The MRP Process of Subtracting On-Hand Quantities and Scheduled Receipts