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Which of the following input data are needed for MRP?
1. Master production schedule
2. Inventory status
3. Bill of materials
4. Machine capacity
Select the correct answer from above:
  • a)
    1,2 and 4
  • b)
    2, 3 and 4
  • c)
    1,2 and 3
  • d)
    1, 3 and 4
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following input data are needed for MRP?1. Master product...
Input Data for MRP

MRP (Material Requirements Planning) is a computer-based inventory management system that helps organizations to manage their production process efficiently by ensuring that the right materials are available at the right time. The following input data are needed for MRP:

1. Master Production Schedule (MPS)
The MPS is a plan that outlines the quantity and timing of the finished products that an organization plans to produce. It is an essential input for MRP as it serves as a basis for determining the materials needed to produce the finished products.

2. Inventory Status
The inventory status provides information about the current inventory levels of raw materials, work-in-progress, and finished goods. It is needed for MRP to ensure that the required materials are available in the inventory when needed.

3. Bill of Materials (BOM)
The BOM is a list of all the materials that are required to manufacture a finished product. It includes information about the quantity, type, and location of the materials. It is an essential input for MRP as it helps in determining the materials needed to produce the finished products.

4. Machine Capacity
Machine capacity is the maximum amount of work that a machine can handle in a given period. It is needed for MRP to ensure that the production plan does not exceed the capacity of the machines.

Answer
Based on the above information, the correct answer is option 'C' - 1, 2 and 3. Machine capacity is not an essential input for MRP, although it can be considered in production planning. However, the other three inputs are necessary for the MRP system to function effectively.
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