Which of the following statements concerning MRP-based planning are TRUE?
A)Planning is based on historical data.
B)Planning is based on exploding the BOM.
C)Dependent demand is derived from independent demand.
D)It is used for low-value materials.
E)Planning is based on calculating a reorder point.

Question

Quizplus · Accepted Answer

MRP-based planning is based on exploding the bill of materials (BOM) to determine the dependent demand for components and materials needed to produce the end product. Dependent demand is derived from the independent demand for the end product, and historical data is used to determine lead times and other planning parameters. This method is not typically used for low-value materials and does not involve calculating a reorder point.

Which of the Following Statements Concerning MRP-Based Planning Are TRUE