Question

Which statement on MRP explosion is BEST? Group of answer choices It calculates the total number of subassemblies, components, and raw materials needed for each parent item. It calculates the total number of raw materials to be purchased from all suppliers. It calculates the total number of parts needed to be produced less the number of parts on hand for each parent item. It calculates the total number of parts to be produced for each parent item.

Answer 1

It calculates the total number of subassemblies, components, and raw materials needed for each parent item.

Explanation: A maximum retail price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh. However, retailers may choose to sell products for less than the MRP.

It is called Process Explosion to refer to Routings (Bill of Operation), take the manufacturing order to processes, and then issue an operation order by the process. By performing the Process Explosion, the necessary processes to produce an item, the order for performing them, the labor hours in each process, and etc.