ENTREPRENEURIAL OPERATIONS
PRODUCTION PLANNING AND CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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there is inventory on hand for net material requirements
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there is inventory on hand for gross material requirements
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there is no inventory on hand for net material requirements
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none of the above
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Detailed explanation-1: -The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is. the gross MRP includes consideration of the inventory on hand, whereas the net MRP does not. the gross MRP may not be computerized, but the net MRP must be computerized.
Detailed explanation-2: -By subtracting the scheduled receipts and on-hand inventory from the gross requirements, businesses can then determine their net requirements.
Detailed explanation-3: -It refers to the quantity requiring actual logistics after allocating the required quantity of item to inventory and released orders, and is obtained by the calculation of MRP’s Calculating Net Requirements, which are taken over to the lot sizing process.