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Chapter 4: Q2OQ (page 580)

MRP is based on what type of demand?

Short Answer

Expert verified

Dependent demand

Step by step solution

01

Dependent demand

Dependent demand refers to the demand that is directly related to the primary source like raw material, etc.

02

Reason why MRP is based on dependent demand

MRPis considered to be the dependent demand because it can influence the customer to buy the product as well as sometimes they can be rejected due to high MRP on the productivity. MRP is also concluded from all the raw materials used for the manufacturing of the product.

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Most popular questions from this chapter

Why is the MRP process referred to as an “explosion”?

A pure strategy that uses inventory and backorders as part of the strategy to meet demand.

State the types of data that would be carried in the bill-of-materials file and the inventory record file.

Questions: How many steps are there in collaborative planning, forecasting, and replenishment (CPFR)?

The practice of allocating capacity and manipulating demand to make it more predictable.
See all solutions

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