Company ABC Ltd

question 59

True/False

Company ABC Ltd. embarked on a training program focused on providing employees with the required skills to continuously look for ways to improve work processes in its factory floor. ABC Ltd. is most likely incorporating TQP in its work processes.

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Definitions:

Materials Requirements Planning

A production planning and inventory control system used to manage manufacturing processes by determining material requirements.

Derived Demand

Demand for a commodity, service, etc., that is a consequence of the demand for something else; for instance, the demand for steel is derived from the demand for automobiles.

Just-In-Time

An inventory strategy that aligns raw-material orders from suppliers directly with production schedules to minimize stock levels.

EOQ

Economic Order Quantity; the ideal order quantity a company should purchase to minimize its inventory costs, including holding, shortage, and order costs.