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Chapter 4: Q5OQ. (page 580)

What are the three primary data sources used by the MRP sources?

Short Answer

Expert verified

The three primary data sources that are used by the MRP sources:

  1. A Bill-of-Materials
  2. A Master Schedule
  3. An Inventory record file

Step by step solution

01

Three Primary data sources

  1. Bill-of-Materials: It contains the whole information about the product to be prepared.
  2. Master Schedule: The detailed planning process tracks manufacturing output and compares it to customer orders.
  3. Inventory record file: It collects the information about the product that is going to be prepared.
02

Reason why these primary data sources are used by the MRP source

These three primary data sources help and enable arriving at the invoice of materials or the merchandise, which is one of the inputs for the MRP system. All the data input into the MRP sources is the result of all the information input from these three main sources.

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Old Pueblo Engineering Contractors create six-month 鈥渞olling鈥� schedules, which are recomputed monthly. For competitive reasons (it would need to divulge proprietary design criteria, methods, and so on), Old Pueblo does not subcontract. Therefore, its only options to meet customer requirements are (1) work on regular time; (2) work overtime, which is limited to 30 percent of the regular time; (3) do customers鈥� work early, which would cost an additional \(5 per hour per month; and (4) perform customers鈥� work late, which would cost an additional \)10 per hour per month penalty, as provided by their contract. Old Pueblo has 25 engineers on its staff at an hourly rate of \(30. The overtime rate is \)45. Customers鈥� hourly requirements for the six months from January to June are

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