CIPS Level 4 Whole Life Asset Management L4M7 · Free Practice Question Medium

Question 15

What data does an organisation need to input into MRP software to manage material requirements for manufacturing processes? Select THREE that apply.

  • A

    Capacity requirement plan

  • B

    Facilities management

  • C

    Bill of materials

  • D

    Payrolls information

  • E

    Inventory records

  • F

    Master production schedule

Reveal correct answers

Correct answers: C, E, F

Explanation

A powerful benefit of MRP system is the capacity to produce exception reports, which show deviations from normal planning and performance. These enable anomalies to be investigated with a view to improve future forecasting.

Material requirement planning is an electronic system for combining the following:

- Known demand

- Forecast demand. Known demand and forecasted demand are shown in master production schedule.

- Bill of materials for the final product

- Inventory records

Reference: CIPS study guide page 116-119

LO 2, AC 2.3

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