Closed-Loop MRP Systems Allow Production Planners to Move Work Between

question 112

True/False

Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity.

---

Definitions:

Break-even Point

The level of sales or production at which total revenues equal total expenses, resulting in neither profit nor loss.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, or insurance premiums.

Cost-volume-profit Chart

A graphical representation that shows the relationships between an organization's costs, sales volume, and profits, used for making strategic business decisions.

Total Fixed Cost

The sum of all costs required to produce any goods or services that do not change with the level of production.