What strategically alters lead times and precisely places safety stock within the BOM structure to improve MRP performance?
A) demand-driven MRP
B) supply-driven MRP
C) service-driven MRP
D) resource-driven MRP
E) constraint-driven MRP

Question

Quizplus · Accepted Answer

Demand-driven MRP (DDMRP) is a method that strategically alters lead times and precisely places safety stock within the bill of materials (BOM) structure to improve MRP performance. This approach ensures that inventory is kept at the right levels to meet customer demand, improves the accuracy of production planning, and optimizes the use of available resources while minimizing inventory costs. DDMRP is a more advanced approach than traditional MRP, which relies on static demand forecasts that may not reflect actual customer demand.

What Strategically Alters Lead Times and Precisely Places Safety Stock