The Three Basic Inputs of MRP Are: 1)the Bill of Material;

question 31

True/False

The three basic inputs of MRP are: 1)the bill of material; 2)inventory on hand,open orders and lead times; and 3)planned order releases.

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Definitions:

Market Failure

Refers to a situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities.

Externalities

Indirect effects of production or consumption activities on third parties, which can be either positive or negative and are not reflected in market prices.

Ideal Economic Efficiency

A state where resources are allocated in the most efficient way possible, maximizing total net benefit to society or economy.

Government Failure

Situations where government interventions in the economy lead to inefficient outcomes, worsening the problem they intended to solve.