Which one of the following is not an input in an MRP system?
A. Planned-order releases
B. Bill of materials
C. Master production schedules
D. Inventory on-hand, open orders and lead times.
The correct answer and explanation is :
The correct answer is:
A. Planned-order releases
Explanation:
Material Requirements Planning (MRP) is a system used in manufacturing and production management to ensure that materials and components are available when needed. It calculates the materials required, their quantities, and the schedules for ordering and receiving them.
MRP systems rely on several key inputs:
- Bill of Materials (BOM) – This is a structured list of all the components and raw materials needed to manufacture a product. It specifies the quantity and hierarchy of components required.
- Master Production Schedule (MPS) – This outlines what products need to be produced, in what quantity, and when. It provides the overall production plan and determines material requirements.
- Inventory Data (On-hand stock, open orders, and lead times) – The system needs to know the current stock levels, outstanding purchase or work orders, and lead times to accurately plan material requirements.
However, Planned-order releases are outputs of the MRP system, not inputs. After processing the inputs, the MRP system generates planned-order releases, which are instructions to procure or manufacture materials at the right time to prevent shortages or excess inventory.
In summary, MRP systems rely on a structured input system to determine material requirements. The inputs include the Bill of Materials (BOM), Master Production Schedule (MPS), and inventory data, but not planned-order releases, which are calculated as a result of the MRP process.