Significant changes in an MPS quantity several weeks into the planning horizon can:
A)Make the MRP more accurate.
B)Cause inconsistencies in the MRP.
C)Reduce stockouts.
D)Increase safety stock.

Question

Quizplus · Accepted Answer

Significant changes in an MPS quantity several weeks into the planning horizon can cause inconsistencies in the MRP as the MRP system relies on accurate MPS data for generating material requirements. Any changes in the MPS quantity can affect the dependent demand for raw materials and components, leading to inaccurate MRP outputs. This can result in overstocking or stockouts, which can lead to additional costs and disruptions in the supply chain. Therefore, it is important to ensure that the MPS data is as accurate as possible throughout the planning horizon to avoid inconsistencies in the MRP.

Significant Changes in an MPS Quantity Several Weeks into the Planning