What is the process of tracing upward in the bill of material from the component to the parent item in order to determine the cause for the component requirement?
A) net requirements planning
B) time fencing
C) pegging
D) backtracking
E) leveling

Question

Quizplus · Accepted Answer

Pegging is the process used in inventory management and production planning to trace the origins of a particular demand for a component or material back through the supply chain to its source, such as a finished product or higher-level assembly. This helps in identifying why the component is needed and in what quantities, facilitating better inventory control and production planning.

What Is the Process of Tracing Upward in the Bill