Which of the following statements about MRP is True?
A) To be classified as a successful MRP user, a company must use either the L4L or POQ rules for lot sizing.
B) MRP gross requirements for a parent item are equal to the planned order releases of its components.
C) MRP logic is based on the logic of uniform, continuous demand, and item independence.
D) MRP gross requirements for a component depend on the planned order releases of its immediate parents.

Question

Quizplus · Accepted Answer

MRP gross requirements for a component depend on the planned order releases of its immediate parents, as the MRP logic is based on the hierarchical relationship among items in the bill of materials. Option A is incorrect because there are alternative lot-sizing rules available such as EOQ, Wagner-Whitin, and Part Period Balancing. Option B is incorrect because MRP gross requirements for a parent item are the sum of the gross requirements of its dependent components. Option C is incorrect because MRP logic assumes fluctuating demand and interdependence among items in the bill of materials.

Which of the Following Statements About MRP Is True