Which of the following is the input component(s) to Materials Requirement Planning (MRP) system?

Explanation

Explanation: Materials requirements planning is a simple system of calculating arithmetically the requirements of the input materials at different points of time based on actual production plan. Q = ∗ ​ ​ C ​h 2DC ​0 Number of orders per year N = ( ) ​ Q∗ D Q = ∗ ​ = ​ C ​c 2DC ​0 ​ = ​ 9.6 2×12000×100 500 units The number of orders per year(N) = ​ = Q∗ D ​ = 500 12000 24 orders It can be seen from the figure that an MRP system has three major input components: Master Production Schedule (MPS): MPS is designed to meet the market demand (both the firm orders and forecasted demand) in future in the taken planning horizon. MPS mainly depicts the detailed delivery schedule of the end products. However, orders for replacement components can also be included in it to make it more comprehensive. Bill of Materials (BOM) File: BOM represents the product structure. It encompasses information about all subcomponents needed, their quantity, and their sequence of build-up in the end product. Information about the work centres performing build- up operations is also included in it. Inventory Status File: Inventory status file keeps an up-to-date record of each item in the inventory. Information such as, item identification number, quantity on hand, safety stock level, quantity already allocated, and the procurement lead time of each item is recorded in this file.