COMPUTER FUNDAMENTALS

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COMPUTER APPLICATIONS

ENTERPRISE RESOURCE PLANNING ERP SOFTWARE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A computer-based production planning system that determines what, how much, and when materials (parts) are needed to produce the end item of a product, is known as:
A
Material Requirement Planning (MRP)
B
Enterprise Resource Planning (ERP)
C
Manufacturing Resource Planning (MRP II)
D
Supply Chain Management (SCM)
E
Production Planning (PP)
Explanation: 

Detailed explanation-1: -A Material Requirements Planning (MRP) system accelerates the manufacturing production process by determining what raw materials, components and subassemblies are needed, and when to assemble the finished goods, based on demand and bill of materials (BOM).

Detailed explanation-2: -MRP uses the bill of materials to determine the quantity of each component that is needed to produce a certain number of finished products. From this quantity, the system subtracts the quantity of that item already in inventory to determine order requirements.

Detailed explanation-3: -In MRP (Materials Requirements Planning) the Bill of Materials is: The required output from a process over time. A list of required safety stock items. The sum of stock-on-hand and work-in-progress.

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