What is the term for the process that uses BOM data, inventory data, and the MPS to determine material requirements?

• A. Manufacturing lead time
• B. Master production schedule
• C. Materials requirement planning (MRP)
• D. MRO supplies

Answer: (C)

This asks about the planning method that figures out what materials are needed and when, using three key data sources: the bill of materials, current inventory, and the master production schedule. Bill of materials defines what components are required for each item. Inventory data shows what is already on hand and what’s outstanding. The master production schedule provides the timing and quantities of finished goods that must be produced. Materials Requirements Planning takes all of that and computes net material needs, considering lead times and lot sizes, and then releases purchase or production orders to meet the schedule. The other terms aren’t the planning method: manufacturing lead time is the time to produce, the master production schedule is the schedule itself, and MRO supplies are a category of maintenance-related items.