Which one of the following statements concerning MRP is TRUE?
A) One of the main prerequisites for implementing an MRP system is to have products with few BOM levels.
B) The scheduled receipts for a parent item are used to calculate the gross requirements for components of that parent.
C) Some of the key inputs to a computerized MRP system are inventory records, updated bills of material, and a valid master production schedule.
D) Benefits of a successful MRP implementation typically include a decrease in the number of inventory turns, and an increase in the number of expediters.

Question

Quizplus · Accepted Answer

A computerized MRP system requires updated bills of material, inventory records, and a valid master production schedule as key inputs. Option A is incorrect because having products with few BOM levels is not a prerequisite for implementing MRP. Option B is incorrect because the gross requirements for components are calculated using the gross requirements for the parent item, not the scheduled receipts. Option D is incorrect because a successful MRP implementation typically leads to an increase in inventory turns and a decrease in the number of expediters needed.

Which One of the Following Statements Concerning MRP Is TRUE