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CMA Intermediate · Operations Management and Strategic Management · Production Planning and Control

In an MRP system, a component takes 2 weeks to procure and its net requirement of 400 units arises in week 8. When should the planned order be released?

The planned order should be released in week 6. MRP offsets backward from the requirement date by the lead time, so a need in week 8 with a two-week lead time means the order must be released two weeks earlier.

  1. AWeek 6Correct
  2. BWeek 8
  3. CWeek 10
  4. DWeek 7

Explanation

Planned order release is offset backward from the need date by the lead time. Week 8 minus 2 weeks gives week 6. Week 10 adds the lead time instead of subtracting it.

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