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.

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Definitions:

ERG Theory

A theory in psychology proposed by Clayton Alderfer that categorizes human needs into three groups: existence, relatedness, and growth.

Frustration-Regression Principle

A concept suggesting that when an individual encounters obstacles or frustrations, they may revert to earlier behaviors as a coping mechanism.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which illustrates a five-tier model of human needs, depicted as hierarchical levels within a pyramid.

Acceptance

The action of consenting to receive or undertaking something offered.