The Output of MRP Is

question 85

Multiple Choice

The output of MRP is:

• A) gross requirements.
• B) net requirements.
• C) a schedule of requirements for all parts and end items.
• D) inventory reorder points.
• E) economic order quantities and reorder points.

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Definitions:

Cash Flow Forecasts

Predictions about the flow of cash in and out of a business, used for planning and management purposes.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project, calculated by subtracting the present values of cash outflows from the present values of cash inflows over a period of time.

Break-Even Analysis

A calculation to determine the point at which revenue received equals the costs associated with receiving the revenue.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets.