Which of the Following Is True About MRP Systems

question 23

Multiple Choice

Which of the following is true about MRP Systems?

• A)Forecast is based on past demand
• B)Lot sizing is EOQ
• C)Demand pattern is random
• D)Objective is to meet manufacturing needs

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Definitions:

Static Budgets

Static budgets are financial plans that do not change over the budgeting period, regardless of any changes in business activity levels or operating conditions.

Service Companies

Organizations that provide intangible products to their customers, usually offering professional advice or services rather than physical products.

Activity Levels

Refers to the volume of work or operations within a specific time frame in a business, affecting cost behavior and operational efficiency.

Goal Conflict

A situation where different parties have goals that are not aligned, leading to potential conflict or inefficiency.