Final answer:
MRP must answer three terms to determine material requirements: what to produce, how to produce it, and how much to produce.
Step-by-step explanation:
Material Requirements Planning (MRP) must answer three terms to determine material requirements:
- What product or products should the firm produce? This question helps determine the specific goods or services that need to be produced to meet the needs of consumers.
- How should the firm produce the products? This question focuses on the production process the firm should use, including methods of production and the resources required.
- What output should the firm produce? This question involves determining the quantity of goods or services the firm should produce to meet market demand.