ENTREPRENEURIAL OPERATIONS
PRODUCTION PLANNING AND CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Material Planning
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Production Planning
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Either A or B
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None of the above
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Detailed explanation-1: -MRP helps develop a production plan for finished goods by defining inventory requirements for components and raw materials. MRP assures that materials and components will be available when needed, minimizes inventory levels, reduces customer lead times, and improves customer satisfaction.
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: -Definition of MRP: MRP is a system designed to plan manufacturing production. It identifies necessary materials, estimates quantities, determines when materials will be required to meet the production schedule, and manages delivery timing – with the goal of meeting demands and improving overall productivity.