Which of the Following Is Absolutely Necessary for Successful Implementation

question 32

Multiple Choice

Which of the following is absolutely necessary for successful implementation and operation of MRP?
(I) accurate inventory records
(II) master schedules
(III) accurate holding and backordering costs
(IV) accurate bills of materials

• A) I, II, and IV only
• B) I, III, and IV only
• C) I, II, and III only
• D) I and II only
• E) I, II, III, and IV

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Definitions:

Willingness To Pay

The maximum amount an individual is prepared to offer for a good or service, reflecting the value they place on it.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is distributed to meet the desires of consumers.