Asked by Kirsten Landsverk on May 05, 2024
Verified
Lead times, inventory availability, and purchase orders outstanding are among the five things operations managers must know for effective use of MRP.
Lead Times
The total time taken for a process from initiation to completion, often used in the context of supply chain and manufacturing.
Inventory Availability
The ability of a company to meet customer demand by having sufficient stock on hand, directly impacting customer satisfaction and sales.
Purchase Orders
Official documents issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
- Understand the calculation and importance of lead times, inventory availability, and purchase orders in MRP.
Verified Answer
JH
Jacob HenschelMay 08, 2024
Final Answer :
True
Explanation :
Lead times, inventory availability, and purchase orders outstanding are important factors that operations managers need to consider for effective use of MRP (Material Requirements Planning). Additionally, they also need to know the bills of materials and current inventory levels to ensure that the required materials are available in time.
Learning Objectives
- Understand the calculation and importance of lead times, inventory availability, and purchase orders in MRP.