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Chapter 4: Q5PE (page 585)

This identifies the specific materials used to make each item and the correct quantities of each.

Short Answer

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Bill-of-Material.

Step by step solution

01

Bill-of-Material

Bill-of-Materialcontains the whole information about the product to be prepared. It is a primary data source that is used by the MRP system.

02

Bill-of-Material is the specific material used to make each item and the correct quantities of each of them

Bill-of-Materials that contains the total information about the product that is to be produced. It is considered to bedependent demand and it helps in arriving at the invoice of materials, which is one of the inputs for the MRP system.

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Most popular questions from this chapter

Question: True/False: Implementing an ERP system is a simple exercise that involves loading software on a computer.

Question:What is the term for forecasts used for making day-to-day decisions about meeting demand?

Question:When forecasting demand for new products, sometimes firms will use demand data from similar existing products to help forecast demand for the new product. What technique is this an example of?

Discuss the meaning of MRP terms such as planned order release and the scheduled order receipt.

Which of the four costs relevant to aggregate production planning is the most difficult to accurately measure?
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