Which of the following statements about MRP is TRUE?
A) MRP always recognizes capacity limitations in production as well as human resources.
B) MRP recognizes the capacity limitations in production, but not in human resources.
C) Capacity limitations are implicit in all MRP calculations.
D) MRP may generate a planned order release that exceeds current production capacity.

Question

Quizplus · Accepted Answer

MRP calculates material requirements based on the master production schedule and inventory levels, but it may generate planned order releases that exceed current production capacity. MRP assumes that all needed resources will be available when required, and it does not explicitly consider labor or machine capacity constraints. However, many MRP systems can be integrated with capacity planning software to address these limitations.

Which of the Following Statements About MRP Is TRUE