Which of the following industry types will not benefit greatly from the application of MRP?
A)Fabricate-to-order
B)Assemble-to-stock
C)Assemble-to-order
D)Manufacture-to-order
E)None of these

Question

Quizplus · Accepted Answer

MRP (Material Requirements Planning) is most effective for industries that manufacture or assemble products that have a clear and consistent bill of materials (BOM) and demand pattern. Assemble-to-stock, assemble-to-order, and manufacture-to-order production types all have a reliable BOM and demand pattern, making them ideal for MRP. However, in fabricate-to-order production, the components and products are unique for each order, so there is no clear BOM or demand pattern that can be effectively planned for using MRP. Therefore, fabricate-to-order industries will not benefit greatly from the application of MRP.

Which of the Following Industry Types Will Not Benefit Greatly