Materials Requirements Planning (MRP)is Used to Determine Quantity and Timing

question 12

Multiple Choice

Materials Requirements Planning (MRP) is used to determine quantity and timing of required materials under conditions of:

• A) Independent demand
• B) JIT operations
• C) Changing CRP requirements
• D) Dependent demand
• E) Stable demand

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Definitions:

Independent Projects

Projects within a financial or business context that do not affect each other's outcomes or viability.

Multiple IRR Projects

Investment projects that, due to their cash flow structure, yield more than one internal rate of return, complicating the investment decision.

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity, by calculating the present value of expected future cash flows.

Discounted Payback

A capital budgeting method that calculates the amount of time needed to recoup an investment based on its discounted cash flows.