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In an ERP system used by a manufacturing company, which module is primarily responsible for converting a finished-goods sales forecast into a schedule of required raw materials, quantities and order dates?

The material requirements planning function of the production planning module does this. It uses forecast demand and the bill of materials to compute raw material quantities and order dates, whereas finance, CRM and HR modules do not plan material needs.

  1. AFinancial accounting module
  2. BMaterial requirements planning within the production planning moduleCorrect
  3. CCustomer relationship management module
  4. DHuman capital management module

Explanation

Material requirements planning (MRP) takes the demand forecast or sales orders and the bill of materials, then works out what materials are needed, in what quantity and when. Financial accounting records the money effects but does not plan material needs. CRM manages customer interactions, and HCM handles employee data.

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