Asked by Angel Cartagena on Jun 05, 2024
Verified
Gross material requirements do not take into account the amount of inventory on hand.
Gross Material Requirements
The total amount of raw materials needed to produce a particular quantity of finished goods, without accounting for waste or efficiency variations.
Inventory On Hand
The total quantity of goods available and stored by a business at any given time.
- Acquire knowledge on assessing lead times, managing inventory status, and initiating purchase orders within the framework of Material Requirements Planning.
Verified Answer
TS
Thomas SpartinosJun 05, 2024
Final Answer :
True
Explanation :
Gross material requirements only consider the total amount of materials required for production, without factoring in any inventory that may already be on hand.
Learning Objectives
- Acquire knowledge on assessing lead times, managing inventory status, and initiating purchase orders within the framework of Material Requirements Planning.