Final answer:
Pegging is the process of tracing and identifying the parent items that have led to the creation of a material requirement for a specific part or subassembly, and the correct answer to the question is True.
Step-by-step explanation:
The term pegging indeed refers to the process of identifying the parent items responsible for the generation of material requirements for a particular part or subassembly. Answer A) True is the correct choice in this context. Pegging is often used in inventory management and production planning, particularly within the framework of Materials Requirement Planning (MRP) systems. Understanding pegging can be as simple as visualizing a square peg fitting through a square hole and a round peg through a round hole, as in the example of a child's toy. In the supply chain, it's all about matching the right components (pegs) with their corresponding requirements (holes).