Supply Chain Management Study Set 2

Statistics

Quiz 9 :

Material Requirements Planning

Quiz 9 :

Material Requirements Planning

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MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.
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MRP is most valuable where a number of products are made in batches using the same productive equipment.
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The master production schedule states the number of items to be produced during specific time periods.
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The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.
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An input to the material requirements planning (MRP) system is an inventory records file.
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MRP is based on dependent demand.
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A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.
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An input to the material requirements planning (MRP) system is an exception report.
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MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.
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An output of MRP is a bill of materials (BOM) file.
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MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.
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A modular bill of materials includes items with fractional options.
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Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.
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Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.
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A BOM file is often called a product structure file or product tree because it shows how a product is put together.
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The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become more "lumpy."
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MRP stands for material requirements planning.
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A master production schedule is an input to a material requirements planning (MRP) system.
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MRP stands for manufacturing requirements planning.
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The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.
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