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NEW QUESTION: 1
In production management, product breakdown into component parts and lead times for procuring these parts is necessary for:
A. A critical path method CPM) system
B. A materials requirements planning MRP) system
C. An ABC system
D. An economic order quantity EOQ) system
Answer: B
Explanation:
Materials requirements planning MRP) is usually considered a computer-based I information system designed to plan and control raw materials used in a production setting. It assumes that estimated demand for materials is reasonably accurate and that suppliers can deliver based upon this accurate schedule. It is crucial that delivery delays be avoided because, under MRP, production delays are almost unavoidable if the materials are not on
hand. An MRP system uses a parts list, often called a bill of materials, and lead times for each type of material to obtain materials just as they are needed for planned production.

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