Which One of the Following Statements About MRP Is Best

question 39

Multiple Choice

Which one of the following statements about MRP is best?

• A) MRP uses a level-by-level processing procedure; the component items are processed first.
• B) An action notice should be issued if the scheduled receipt in a period is less than the projected on-hand inventory for that period.
• C) The periodic order quantity rule introduces remnants that are used as a buffer against uncertainties.
• D) The fixed order quantity rule results in remnants.

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Definitions:

Significant Barriers

Major obstacles or impediments that prevent new competitors from easily entering an industry or area of business.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, resulting in surplus gain.

Product Variety

The diversity of different items a firm, industry, or economy produces, providing consumers with multiple options to satisfy their preferences.

Graph Drawing

The process of representing data visually using plots and charts to make the information easier to understand.