Reduced Inventory Levels and Faster Response to Changes in Demand

question 29

True/False

Reduced inventory levels and faster response to changes in demand are both benefits of MRP.

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Definitions:

Controllable Margin

The portion of profit or income directly influenced by the management decisions, typically excluding fixed costs.

Required Return

The minimum expected return by investors for providing capital, based on the risk of the investment.

Operating Assets

Assets used in the daily operations of a business to generate revenue, such as machinery, building, and equipment.

ROI

Return on Investment; a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.