Throughout every MRP record, ending inventory is equal to the ending inventory from the previous period, plus the master production schedule quantity, minus the orders booked for that period.

Question

Quizplus · Accepted Answer

The statement is incorrect. Ending inventory is equal to the ending inventory from the previous period, plus the production planned for the current period, minus the projected demand for the period. Orders booked for that period may or may not be included in the calculation of projected demand.

Throughout Every MRP Record, Ending Inventory Is Equal to the Ending