What Is a Key Feature of Materials Requirements Planning (MRP)

question 104

Multiple Choice

What is a key feature of materials requirements planning (MRP) ?

• A)minimize or entirely eliminate carrying and stockout costs
• B)reduce required inventory levels by scheduling production rather than estimating needs
• C)determine the optimal reorder point
• D)determine the optimal order size

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Definitions:

Annuity Factor

A multiplier used to calculate the present value of an annuity, representing the sum of the present values of all future annuity payments.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on invested capital.

Compounding Periods

The frequency with which interest is added to the principal balance of a financial instrument, affecting the total interest earned or paid over time.

Periodic Payments

Regular payments made over a determined period, such as monthly rent or mortgage payments.