Which of the Following Statements Regarding MRP in Services Is

question 182

Multiple Choice

Which of the following statements regarding MRP in services is true?

• A) MRP is for manufacturing only, and is not applicable to services.
• B) MRP can be used in services, but only those that offer very limited customization.
• C) MRP does not work in services because there is no dependent demand.
• D) Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.
• E) MRP cannot be effectively used in most services.

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Definitions:

Equivalent Payments

Payments of equal value adjusted for timing or conditions to make them comparable.

Equal Payments

Regular payments of the same amount, often used in the context of loans or mortgages.

Interest Rate

The ratio of a loan that accumulates interest charges for the borrower, customarily articulated as an annual percentage of the loan outstanding.

Interest Rate

The percentage at which interest is charged or paid on a loan or investment over a specific period of time.