Question

Q.1 Inventory Location Balance Accuracy is

	A.	Not necessary for planning.
	B.	The measurement in the S&OP process of how much finished goods inventory a company has compared to planned levels.
	C.	The accuracy of the perpetual balances in the ERP system.
	D.	Only important to accounting functions and not to manufacturing.
	E.	B and C

Q.2 An MRP explosion

	A.	Requires immediate attention from the IT department
	B.	Requires access to open PO (purchase orders) to work correctly
	C.	Happens rarely in manufacturing
	D.	Requires alternative routings to work effectively

Answer 1

1. Inventory location balance accuracy is

Option C) The accuracy of the perpetual balances in the ERP

Reasoning: An Inventory location balance accuracy is a measure of how close the total real-time or perpetual count of inventory is to the estimated or required amount along with metadata like its location within the warehouse along with it's labelling information. Sine inventory location accuracy has to be real-time or perpetual, it can only be done using an ERP or an enterprise resource planning software.

1. An MRP explosion

Option B) Requires access to open POs or Purchase Orders to work correctly

Reasoning : MRP stands for material requirements planning. its the process planning documenting & forecasting the list of all raw materials along with the process component that'll be used to produce or manufacture the end product (which. is also known as an MRP Process explosion) along with its operational data. The process explosion or the actual part of the MRP which forecasts production requires a list of inputs that tell the MRP or the user about the number of units along with details like batch quality and delivery time frames.