OPERATIONS+SUPPLY CHAIN...:CORE >INTL<
OPERATIONS+SUPPLY CHAIN...:CORE >INTL<
5th Edition
ISBN: 9781260547627
Author: Jacobs
Publisher: MCG
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Chapter 21, Problem 1DQ
Summary Introduction

To determine: The meaning of the statement.

Introduction: Material Requirement Planning can be used to determine the number of components, needed parts, and other materials, which are necessary to produce the finished goods.

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Explanation of Solution

Determine the meaning of the statement “MRP is based on dependent demand”:

Material Requirement Planning (MRP) is the method which can be used to develop a detailed definition of material needs.

The decisions made in planning end-item production would influence the decisions to be made in the MRP. The MRP system is unnecessary when there is no end-item production, as the order quantity be subject to the plans for end-item production.

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