Material Requirement Planning

Question 1

What is Material requirement planning (MRP)?

Answer 1

Information system developed specifically to help manufacturers manage dependent demand inventory and schedule replenishment.

Question 2

What is MRP explosion?

Answer 2

A process that converts requirements of various final products into material requirements plan that specifies the replenishment schedules of all the subassemblies, components, and raw materials needed to produce final products.

Question 3

Bill of materials (BOM)?

Answer 3

A record of all the components of an item, the patent-component relationships, and the usage qualities derived from engineering and process designs.

Question 4

What is Gross Requirement?

Answer 4

The total demand derived from all parent production plans.

Question 5

What is Scheduled Receipt?

Answer 5

Orders placed but not yet completed. (Open orders)

Question 6

What is Projected on-hand inventory?

Answer 6

Estimate of inventory available each week, after gross requirements have been satisfied.

Question 7

What is are Planned Receipts?

Answer 7

Orders that are not yet released to the shop or supplier.

Question 8

What is Planned Order Receipt?

Answer 8

Indication of when an order for a specific quantity of an item is to be issued