Material requirements plans specify
A) the quantities of the product families that need to be produced
B) the quantity and timing of planned order releases
C) the capacity needed to provide the projected output rate
D) the costs associated with alternative plans
E) whether one should use phantom bills of material or not

Question

Quizplus · Accepted Answer

Material requirements plans (MRPs) specify the quantity and timing of planned order releases. MRPs are used to determine what materials are needed and when they should be ordered in order to meet production schedules. MRPs also help to reduce inventory costs by ensuring that materials are only ordered when they are needed. While the other options listed may be factors in creating an MRP, they are not its primary purpose.

Material Requirements Plans Specify