The underlying logic for level-by-level processing in an MRP system is
A) each item in a bill of material must be processed from the bottom up.
B) items without safety stock quantities must be processed before items that have safety stocks greater than zero.
C) items must be processed in order of increasing lead time.
D) all parents of an item must be processed before that item is processed.

Question

Quizplus · Accepted Answer

The underlying logic for level-by-level processing in an MRP system is that all parents of an item must be processed before that item is processed. This ensures that components are available when needed for higher-level assemblies. Processing from the bottom up (Choice A) is not necessary as parents can be processed before their components. Safety stocks (Choice B) and lead times (Choice C) may be factors in determining when to process items, but they are not the underlying logic for level-by-level processing.

The Underlying Logic for Level-By-Level Processing in an MRP System