Which MRP row is derived from planned order receipts by offsetting the planned receipt quantity to the left by the appropriate lead time?

Which MRP row is derived from planned order receipts by offsetting the planned receipt quantity to the left by the appropriate lead time?

• A. Planned order release
• B. Planned order receipt
• C. MRP exception
• D. Firmed plan

Answer: (A)

In MRP, you start with planned order receipts to show when material is expected to arrive. To know when to initiate that order, you shift the planned receipt date left by the lead time. The result of that leftward shift is the planned order release, which is the action to authorize purchasing or production so the item will arrive on its planned receipt date. For example, if a receipt is planned for week 6 and the lead time is two weeks, the release is in week 4. The other concepts—MRP exception, a firmed plan, or a planned order receipt—do not describe this timing shift from receipt to release.

In MRP, you start with planned order receipts to show when material is expected to arrive. To know when to initiate that order, you shift the planned receipt date left by the lead time. The result of that leftward shift is the planned order release, which is the action to authorize purchasing or production so the item will arrive on its planned receipt date. For example, if a receipt is planned for week 6 and the lead time is two weeks, the release is in week 4. The other concepts—MRP exception, a firmed plan, or a planned order receipt—do not describe this timing shift from receipt to release.