Which one of the following statements about material requirements planning is TRUE?
A) MRP is intended mainly for MRO (maintenance, repair, and operating supplies) items where the demands are not too "lumpy."
B) The more volatile the manufacturing environment, the more likely it is that an MRP installation will be successful.
C) Survey results show that most companies adopting MRP have a purely line flow strategy.
D) The distinctive advantages of MRP are greater when there are many BOM levels, large lot sizes, and a manufacturing environment that is not too volatile.

Question

Quizplus · Accepted Answer

MRP is most effective in manufacturing environments with many BOM levels and large lot sizes. However, if the manufacturing environment is too volatile, MRP can be less effective as changes in demand or supply can quickly cause disruptions in the production schedule. Therefore, MRP is most effective in a stable manufacturing environment.

Which One of the Following Statements About Material Requirements Planning