Which of the following statements concerning MRP systems is FALSE?
A) MRP is a computer-based inventory planning and control information system designed to handle production scheduling of dependent-demand inventories for batch systems.
B) MRP is designed to determine how much is needed and when the need occurs for items that experience dependent demand (components, subassemblies, parts, and raw materials).
C) MRP systems are based on a replenishment philosophy, which indicates that material should be ordered when stock runs low.
D) The ordering philosophy of MRP may result in "lumpy" demand for component parts.

Question

Quizplus · Accepted Answer

The ABC principle does not work well for MRP systems. The items ordered in a MRP system are based on requirements generated from the master production schedule and are treated as equally important to the MPS.

Which of the Following Statements Concerning MRP Systems Is FALSE