Which of the Following Statements Is True with Regard to DRP

question 61

Multiple Choice

Which of the following statements is true with regard to DRP?

• A)DRP is a push system because we start with the earliest stage in production and push products to the customer.
• B)DRP is a pull system because demand at the retail level pulls inventory and shipments through the supply chain.
• C)DRP is a push system because we make extensive use of demand forecasts to determine our capacity requirement.
• D)DRP is a pull system because we start with the earliest stage in production.

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, a fundamental concept in economics and financial decision-making.

Underground Storage

Facilities used for storing various substances below the earth’s surface, often pertaining to fuel and hazardous materials.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profitability.

CCA Class

In Canadian taxation, Capital Cost Allowance (CCA) Classes categorize depreciable assets for the purpose of determining annual depreciation expenses for tax purposes.