Question

Match the industry type to the expected benefits from an MRP system as High, Medium, or Low.

Short answer

1. High
2. High
3. Low
4. Low
5. High
6. Medium

Step-by-step solution

Identifying whether assemble-to-stock is high, medium, or low

The manufacturing process involves lots of processes such as different types of raw materials, components, and sub-assemblies. In this, the requirements are distributed at various levels but with optimum utilization of resources with the commitment to delivery. The cost included is kepthigh.

Identifying whether assemble-to-order is high, medium, or low

Mostly it is considered that the requirement of parts is more dependent on customer specifications. The beginning level of manufacturing is done from the customer need at various levels and all these, at last, conclude highbenefit in MRP.

Identifying whether make-to-stock is high, medium, or low

Manufacturing of standard products such as bolts and nuts involves steel, rods, etc., and making them into end products results in high demand, and the benefits of MRP are quite low.

Identifying whether make-to-order is high, medium, or low

In this, the manufacturing is related to storing the liquid materials such as tanks for petroleum products which are only prepared on orders. This involves buying huge sheets, which ultimately results in low benefits of MRP.

Identifying whether engineer-to-order is high, medium, or low

Usually, the production of ships and aircraft is carried out on customer orders. It involves the high purchase of raw materials such as engines, gearboxes, and many more, which conclude highbenefits of MRP.

Identifying whether the process is high, medium, or low

Typically, manufacturing commodities like plastic, aluminum, steel, cement, etc., involves the purchase of standard raw material, resulting in mediumMRP.