Which of the following is NOT a feature of MRP?

• A. Calculates material requirements
• B. Schedules replenishment
• C. Manages supplier contracts
• D. Ensures production availability

Answer: (C)

Material Requirements Planning focuses on turning the production plan into material needs and timing. It uses the bill of materials and current inventory to calculate exact quantities required and the lead times to bring them in, then schedules replenishments so parts arrive when needed and supports production availability by aligning material flow with the plan.

Managing supplier contracts, including terms and pricing, is handled by procurement or contract-management functions, not by MRP. MRP may trigger purchase orders, but it doesn’t manage contract terms or supplier performance. That’s why this option describes a capability outside MRP’s scope.