Question

What are the sources of demand in an MRP system? Are these dependent or independent, and how are they used as inputs to the system?

Short answer

The MRP system uses three data sources:

1. A bill-of-materials
2. A master schedule
3. An inventory record file

Step-by-step solution

Sources of demand in an MRP system

1. Bill-of-materials that contain the total information about the product to be produced.
2. The master schedule is detailed planning process tracks manufacturing output and compares it to customer orders.
3. Theinventory record file collects the information about the product that will be prepared.

These are dependent or independent. They used as inputs to the system

Bill-of-material is considered to bedependent demand, a master schedule is independent, and an inventory record file is a dependent and independent demand.

These three data sources aid in the arrival of the invoice of materials or the merchandise, which is one of the inputs for the MRP system. As a result of the information provided by these data sources, the information is input into the MRP system.