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Chapter 4: Q7OQ. (page 580)

What is the process used to ensure that all of the needs for a particular item are calculated at the same time in the MRP process?

Short Answer

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Low-level coding

Step by step solution

01

Low-level coding

Low-level codinghelps in planning the items in the correct order. For the items that have been already planned, the demand is not passed to them. While the processing of production, lots of material is used in producing, it is not important that all the materials are applied in the same amount.

It is used as per the requirement of material. If there is less requirement of material, then low-level code will be given.

02

Utilization of low-level coding

Low-level codingis used in processing. The items that have 0 low-level proceeds earliest and then so on. In this, the system items proceed only one time.

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Most popular questions from this chapter

Questions: What is the first step in CPFR?

Ordering exactly what is needed each period without regard to economic considerations.

None of the techniques for determining order quantity consider this important non-economic factor that could make the order quantity infeasible.

Should safety stock be necessary for an MRP system with dependent demand? If so, why? If not, why do firms carry it anyway?

This type of analysis is most appropriate when the past is a good predictor of the future?
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