Which of the following best describe the function of MRP?

Which of the following best describe the function of MRP?
A . Planning and controlling of production and finance
B . Planning and monitoring of inventory resources
C . Planning and monitoring of production resources only
D . Planning and controlling of production and inventory

View Answer

Answer: D

Explanation:

Material requirement planning (MRP) is a production planning and material (inventory) control system used in manufacturing. Objectives of MRP are to ensure materials are available for production while minimising inventory and to plan production and procurement activities.

MRP process is described in the graph below:

Reference: CIPS study guide page 116-119

LO 2, AC 2.3