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

Which statement correctly distinguishes MRP II from basic MRP?

MRP II extends basic MRP by integrating capacity planning, shop floor control and financial planning with material planning. It still relies on the master production schedule and bill of materials, so it is a wider resource planning system, not a simpler reorder-point method.

  1. AMRP II extends MRP by integrating capacity planning, shop floor control and financial planning with material planningCorrect
  2. BMRP II is a simpler method that ignores the bill of materials and uses only reorder points
  3. CMRP II deals only with the purchase of raw materials and excludes production scheduling
  4. DMRP II replaces the master production schedule with a continuous kanban pull system

Explanation

MRP II (Manufacturing Resource Planning) builds on MRP by closing the loop with capacity requirements planning, shop floor control, and links to finance and marketing. It still uses the BOM and MPS. The kanban option describes JIT, not MRP II.

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