Asked by Efrain Lomeli on Jun 05, 2024
Verified
When safety stock is deemed absolutely necessary, the usual policy is to build it into the projected on-hand inventory of the MRP logic.
Safety Stock
Extra inventory held to guard against uncertainty in demand or supply, minimizing the risk of stockouts.
Projected On-Hand Inventory
An estimate of the amount of stock that will be physically available in inventory at any given time, factoring in current stock levels, incoming supply, and outgoing orders.
MRP Logic
The set of principles and calculations used in Material Requirements Planning, aimed at ensuring the right materials are available for production at the right time.
- Comprehend the process and significance of determining lead times, stock levels, and procurement requests in Material Requirement Planning.
Verified Answer
CC
Chyna CephasJun 09, 2024
Final Answer :
True
Explanation :
This is correct. Safety stock is typically included in the projected on-hand inventory of the MRP (Material Requirements Planning) system in order to ensure that sufficient inventory is available to meet anticipated demand while minimizing the risk of stock shortages.
Learning Objectives
- Comprehend the process and significance of determining lead times, stock levels, and procurement requests in Material Requirement Planning.