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Fixed-interval ordering in MRP places orders that cover a predetermined number of periods.

A) True
B) False

User Daweo
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1 Answer

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Final answer:

The statement is false; MRP orders are scheduled based on demand forecast and lead times, not on a predetermined interval.

Step-by-step explanation:

The statement that fixed-interval ordering in Material Requirements Planning (MRP) places orders that cover a predetermined number of periods is False. Fixed-interval ordering refers to placing orders at regular intervals, regardless of the demand during those periods. In contrast, MRP is demand-driven, meaning it schedules orders based on the actual demand forecast and the lead times of various components and materials. Therefore, in MRP, the timing of orders is dependent on when materials are needed to meet specific production schedules and not on a predefined interval.

User Aravin
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