Question

Accuracy of data is a basic requirement for ERP and MRP to work accurately. The following would most likely not be an example of data referred to in the MRP calculations.

A. Perpetual balances

B. On-order PO accuracy

C. BOM Accuracy

D. Factory blueprint (drawing specification accuracy)

E. Purchased lead time

F. D and E

Answer 1

Answer:

The correct option is “F. D and E”

MRP (material requirement planning) is the plan for production or purchase of items, products, parts, subassemblies which are required for the production of final product. It is a plan which is product wise, period wise and time period wise.

For calculating the MRP plan, there are certain inputs which becomes the base for the calculation of required items. The basic inputs required for MRP are:

(MPS) Master Production Schedule - which gives plan for end product production.

On hand inventory - required for netting off from gross dependent requirement.

Scheduled receipts - required for netting off from gross dependent requirement.

BOM (Bill of material) - which gives the item that goes in a product and its standard norm.

So the data that are referred in MRP calculations are:

A. Perpetual balances (giving on hand inventory)

B. On-order PO accuracy (giving scheduled receipts)

C. BOM Accuracy (giving item that goes in a product and its standard norm)

The data which is NOT referred in MRP calculations are:

D. Factory blueprint (drawing specification accuracy) – as it does not give any input to MRP calculation. Factory blueprint is the layout of factory, machinery, building, utilities etc.

E. Purchased lead time: Purchase lead time would be the give standard delivery lead time but in real time there could be deviations from the standard. Thus scheduled receipt date is relevant and purchase lead time is not.

So the answer is “F. D and E”.