Because the Item Master File Is an Input into the MRP

question 65

True/False

Because the item master file is an input into the MRP process,it should be routinely updated to reflect any revisions or changes.

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Definitions:

MRP

An acronym for Material Requirements Planning, a system used for production planning and inventory control, or alternatively for Marginal Revenue Product, the extra revenue generated from employing one more unit of a resource.

Wage Rate

The fixed amount of compensation paid to employees for their labor, typically expressed as a rate per hour.

Derived Demand

Defines the demand for a good or service that results from the demand for another good or service.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded.