Question

MRP is used to plan the time-phased acquisition (either purchase or production) of components (i.e. dependent demand items) needed to support the planned production of independent demand items, taking into account forecasts for end-item demand (independent demand), production flow times (lead times), demand and supply variability, and batch sizing.

Which of the following is NOT true of an MRP system?
Select one:
a. MRP helps to plan production and inventories in order to fulfill end-item demand while managing setup costs (with proper lot sizes).
b. Safety inventory policies find balance between costs of inventory and the impact of reduced flow rates.
c. Batch size policies try to maximize flow rate while minimizing inventory holding and setup costs.
d. MRP is best suited for non-standardized, continuous-flow products.

Answer 1

d. MRP is best suited for non-standardized, continuous-flow products.

Step-by-step explanation:

MRP is not used for non-stadardized products. All the concepts fo batch size, economic order quantity are used for standardized products.

MRP means material requirements planning.