Materials requirement plan (MRP) is most effective at managing independent demand items.

Materials Requirement Plan (MRP)

A system for calculating the materials and components needed to manufacture a product, ensuring the right materials are available for production at the right time.

Independent Demand Items

Products for which demand is not influenced by the demand for other products, typically finished goods or spare parts.

Detail the significance of capacity requirements planning (CRP) and materials requirements planning (MRP) in managing production processes.

Verified Answer

Karanpreet SinghMay 18, 2024

Final Answer :

False

Explanation :

MRP is most effective at managing dependent demand items, as it schedules the production and purchase of components based on the demand of the final product.

Learning Objectives

Detail the significance of capacity requirements planning (CRP) and materials requirements planning (MRP) in managing production processes.

Materials requirement plan (MRP) is most effective at managing independent demand items.

Definitions

Learning Objectives

Learning Objectives

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