Material Requirements Planning Fundamentals Flashcards

What is the primary input that drives the MRP explosion process?

Answer: Master Production Schedule (MPS)

The Master Production Schedule is the primary driver of MRP, defining what end items need to be produced and when.

In MRP terminology, 'gross requirements' refers to:

Answer: Total demand before considering on-hand inventory

Gross requirements represent the total quantity of a component needed before accounting for any on-hand inventory or scheduled receipts.

Which technique in MRP calculates net requirements by subtracting projected on-hand inventory from gross requirements?

Answer: Netting

Netting is the MRP process of subtracting on-hand inventory and scheduled receipts from gross requirements to determine what actually needs to be ordered.

A component with a lead time of 3 weeks is needed in week 8. When should the planned order release be scheduled?

Answer: Week 5

Lead time offsetting places the planned order release 3 weeks before the need date, so week 8 minus 3 weeks equals week 5.

What does a 'scheduled receipt' in an MRP record represent?

Answer: An open purchase order or work order already in progress

Scheduled receipts are existing open orders (POs or work orders) already released to vendors or the shop floor that are expected to arrive in a future period.

Which of the following best describes 'dependent demand' in the context of MRP?

Answer: Demand for components derived from the production plan for parent items

Dependent demand is derived mathematically from the demand for parent items using the BOM and is the core demand type that MRP manages.

In MRP, the 'planning horizon' should be at least as long as:

Answer: The cumulative lead time of the product with the longest supply chain

The planning horizon must cover the cumulative lead time of the most complex product so that all lower-level components can be planned in time.