Which statement on MRP explosion is best?
A) It calculates the total number of subassemblies, components, and raw materials needed for each parent item.
B) It calculates the total number of raw materials to be purchased from all suppliers.
C) It calculates the total number of parts to be produced for each parent item.
D) It calculates the total number of parts needed to be produced less the number of parts on hand for each parent item.

Question

Quizplus · Accepted Answer

MRP explosion is a process that calculates the total number of subassemblies, components, and raw materials needed for each parent item. It breaks down the parent item into its component parts and determines the quantities needed to fulfill the production plan. Option B is incorrect because MRP explosion does not calculate the total number of raw materials to be purchased from all suppliers; it only calculates the required raw materials for each specific parent item. Option C is incorrect because MRP explosion also includes the calculation of subassemblies and components, not just the parts to be produced. Option D is incorrect because MRP explosion does not account for the number of parts on hand; it only calculates the total number of parts needed for each parent item.

Which Statement on MRP Explosion Is Best