Batch production leads to lumpy demand for components. 5. 5. MRP is used within most MRP II and ERP systems. True False TRUE MRP II and ERP systems incorporate MRP. 6. 6. The master production schedule states which end items are to be produced, in addition to when and how many. True False TRUE These are critical inputs into MRP. 7. 7. Net requirements equal gross requirements minus safety stock. True False FALSE If safety stock is required, net requirements will be higher. The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.
True False TRUE This ensures that materials plans can be adequately formulated. 9. 9. Initially, a master production schedule – the output from MRP – may not represent a feasible schedule. True False TRUE Management must make more detailed capacity requirements planning to determine whether these more specific capacity requirements can be met and some adjustments in the master production schedule may be required. 10. 10. MRP, considering inventory position, bills of material, open purchase orders and lead times guarantees a feasible production plan if the inputs to MRP are accurate. True False FALSE