Question

True or false?The nature of the business determines the frequency of MRP which can either be daily, weekly, or biweekly. An organization can either use Make to Stock (MTS) where production runs are made as per forecast or Make to Order (MTO) where production runs are made as per orders received. MTO scenario has lots of variations, hence an organization should run MRP on a daily basis. On the other hand, MTS has fewer variations, therefore, an organization should run MRP or a weekly or biweekly basis.

Answer 1

True

Step-by-step explanation:

Material Requirement Planning MRP can be run weekly, monthly or annually depending on the nature of business. This helps production managers to plan the capacity needs. Few organizations run MRP even on every 12 hours. If MTO has little variations the organization can run MRP twice a week but in the given scenario the MTO has lots of variations the organization should run MRP on daily basis and MTS has little variations the organization can run MRP weekly or biweekly.