The Primary Output of a Materials Requirements Planning (MRP) System

question 63

Multiple Choice

The primary output of a materials requirements planning (MRP) system is a time-phased report that gives all of the following EXCEPT:

• A) the facilities managers a detailed schedule for acquiring additional factory space.
• B) the accounting and financial functions production information that drives cash flow, budgets, and financial needs.
• C) the production managers a detailed schedule for manufacturing the product and controlling manufacturing inventories.
• D) the purchasing department a schedule for obtaining raw material and purchased items.

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Definitions:

Management's Plans

The strategic and operational plans developed by a company's management to achieve its goals and objectives.

Direct Labor Hours

The sum of working hours of employees directly participating in the production of goods or provision of services.

Production Budget

An estimate of the total number of units that must be produced in a given period to meet both sales and inventory needs.

Production Budget

A production budget is a financial plan that estimates the number of units to be produced to meet anticipated sales demand.