In MRP, which term refers to the discrete planning time horizon divided into equal intervals?

• A. Scheduled receipt
• B. Time bucket
• C. Net requirement
• D. Projected on-hand inventory

Answer: (B)

In MRP, the planning horizon is broken into uniform, equal-length intervals called time buckets. This discretization lets the system align demand, planned receipts, and on-hand inventory period by period, making it possible to compute gross requirements, net requirements, and projected on-hand for each slice of time. The idea is that each time bucket represents a single planning period (like a day or a week), and all material movements are tracked within those consistent intervals.

A scheduled receipt is a known incoming order with a set arrival date, not the way the horizon is divided. Net requirement is the amount still needed after accounting for on-hand inventory and scheduled receipts, not the interval structure. Projected on-hand is the forecasted inventory level after considering planned receipts and demands, also not the interval concept.