Management Notes

Reference Notes for Management

Which of the following is an input file necessary to run an mrp system?

Which of the following is an input file necessary to run an mrp system?

A) Bill of materials (BOM) file
B) Quality management report
C) Exception reports
D) Planned-order schedules
E) Purchasing contracts

The Correct Answer is option A) Bill of materials (BOM) file

An input file necessary to run an mrp system is Bill of materials (BOM) file. Bills of materials (BOM) list all of the raw materials, assemblies, subassemblies, parts and components, as well as their quantities, a product needs in order to be manufactured. An item list consists of everything that is required to build a product. In the process manufacturing industry, a BOM is sometimes referred to as a product structure, assembly component list or production recipe. An MRP system, also known as a Manufacturing Resource Planning system, is a piece of software that integrates crucial aspects of the modern manufacturing process together. Inventory management, customer relationship management, procurement, scheduling, and much more are all part of it.

The main goals of all MRP systems are to optimize inventory (avoid overstocking and stock-outs) and plan out all aspects of the manufacturing process, including material procurement, production, and delivery of the finished product. A systematic approach is likely to result in improvements in product quality, price balance, and delivery accuracy, both of which will be passed on to the customer. MRP systems are typically software-based, although there are exceptions, for example, some smaller manufacturers may still use pen and paper to plan manufacturing.

Modern MRP software is often cloud-based, meaning on-premises servers are not needed and IT departments are not accountable for maintaining the infrastructure. Even small manufacturers can implement and use this type of manufacturing software. Today, many software providers offer their systems as services with low monthly subscription fees, as opposed to implementing MRP systems ten years ago.

In addition to having the ability to be accessed via smartphones, MRP systems are also accessible via tablets, which makes it easier for workers on the shop floor to report on their activities and allows managers to view real-time information about the company.

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