Question

Which of the following is not generally considered to be a benefit of MRP?

                A)    the ability to keep track of material requirements

                B)    low levels of in-process inventories

                C)    a means of allocating production time

                D)    the ability to evaluate capacity requirements generated by a given master schedule

                E)     the ability to generate a feasible master schedule

Answer 1

The answer is option E.

MRP is preferable when dependent demand exists and MRP system focus on meeting three objectives. They are: -

• to make sure material is available for production.
• to make sure products are available for delivery.
• focus on maintaining the lowest possible inventory.