Which of the Following Statements Concerning MRP Systems Is FALSE

question 10

Multiple Choice

Which of the following statements concerning MRP systems is FALSE?

• A) MRP is a computer-based inventory planning and control information system designed to handle production scheduling of dependent-demand inventories for batch systems.
• B) MRP is designed to determine how much is needed and when the need occurs for items that experience dependent demand (components, subassemblies, parts, and raw materials).
• C) MRP systems are based on a replenishment philosophy, which indicates that material should be ordered when stock runs low.
• D) The ordering philosophy of MRP may result in "lumpy" demand for component parts.