Materials Requirements Planning (MRP)is used to determine quantity and timing of required materials under conditions of:
A) Independent demand
B) JIT operations
C) Changing CRP requirements
D) Dependent demand
E) Stable demand

Question

Quizplus · Accepted Answer

MRP is used to manage dependent demand, which is demand for components or raw materials that are used in the production of a finished product. The system calculates the quantity and timing of these materials based on the production schedule and the bill of materials for the finished product. Independent demand refers to demand for the finished product itself, and is typically managed through forecasting and inventory management systems. JIT operations focus on reducing inventory and lead times, and may not require MRP. Changing CRP requirements refers to capacity requirements planning, which is a related but separate process from MRP. Stable demand may still require MRP if the company is producing multiple products with different bills of materials and lead times.

Materials Requirements Planning (MRP)is Used to Determine Quantity and Timing