Final answer:
MRP, considering inventory position, bills of material, open purchase orders, and lead times, guarantees a feasible production plan if the inputs to MRP are accurate.
Step-by-step explanation:
True.
Material Requirements Planning (MRP) is a planning and inventory control system used in manufacturing. When the inputs to MRP, such as inventory position, bills of material, open purchase orders, and lead times, are accurate, MRP can generate a feasible production plan.
MRP uses the information on inventory levels, product structure, and procurement lead times to calculate the requirements for raw materials and components needed to meet the production schedule. By taking into account the available inventory and the lead times for purchasing or producing the required materials, MRP determines the timing and quantities of orders for each item.
For example, if a company needs to produce 100 units of a product and the MRP system accurately reflects the current inventory position, the bill of material for the product, the open purchase orders, and the lead times for procurement, the MRP system can generate a production plan that ensures the necessary raw materials and components are available at the right time.