Which one of the following statements about MRP is FALSE?
A. It is used by manufacturers that assemble products.
B. It is usually performed manually.
C. It plans production/purchase of parts working backwards from plans for products.
D. MRP requires accurate Bills of Material and inventory records.
The correct answer and explanation is :
Correct Answer:
B. It is usually performed manually.
Explanation:
Material Requirements Planning (MRP) is a system used by manufacturers to ensure that materials and components are available for production when needed. It plays a crucial role in managing inventory, scheduling production, and reducing waste. Let’s analyze the options to understand why option B is false.
- MRP is used by manufacturers that assemble products (Option A – TRUE)
MRP is widely used by manufacturers who assemble products because it helps them determine what materials and components are needed and when they should be ordered. It is especially beneficial in industries like automotive, electronics, and aerospace, where multiple components must come together in a precise sequence. - MRP is usually performed manually (Option B – FALSE)
Modern MRP systems are typically computerized and integrated into Enterprise Resource Planning (ERP) software. While manual calculations were used in early MRP implementations, today’s businesses rely on automated systems to handle complex calculations, track inventory, and generate production schedules. Performing MRP manually would be inefficient, prone to errors, and time-consuming. - MRP plans production/purchase of parts working backwards from plans for products (Option C – TRUE)
MRP uses a backward scheduling approach, meaning it starts with the final production schedule and works backward to determine when materials need to be ordered and processed. This ensures that components arrive just in time for production, reducing excess inventory costs. - MRP requires accurate Bills of Material and inventory records (Option D – TRUE)
An effective MRP system relies on accurate Bills of Material (BOM) and inventory records to function properly. The BOM specifies the structure and quantity of components needed, while inventory records track what is already available. Any inaccuracies in these records can lead to material shortages, production delays, or excess inventory.
Thus, the false statement is B, as MRP is primarily automated rather than performed manually.