Service parts needs are most often determined by:
A) bills of material explosion.
B) forecasts based on prior demand.
C) material requirements planning (MRP) logic calculations.
D) analysis of lead-time requirements.

Question

Quizplus · Accepted Answer

Service parts needs are most often determined by forecasts based on prior demand. This means that historical data is used to predict future demand for service parts, which is the most commonly used method in practice. Bills of material explosion and MRP logic calculations are more commonly used for manufacturing planning, while analyzing lead-time requirements can provide insight into the timing of service parts needs, but not the actual quantity needed.

Service Parts Needs Are Most Often Determined By