When Would an MRP Inventory Approach Be Preferred to a JIT

question 95

Multiple Choice

When would an MRP inventory approach be preferred to a JIT inventory approach?

• A)when a product has a short life cycle
• B)when demand for inventory is fairly predictable
• C)when demand for inventory is very unpredictable
• D)MRP is always a preferred method over JIT.

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Definitions:

Financial Statements

Comprehensive reports that provide information on a company's financial performance, financial position, and cash flows over a specific period.

Corporate Governance

The procedures designed to ensure that the company is managed in the interests of the shareholders.

Board of Directors

A body of people chosen by stockholders to supervise the administration and make significant decisions for a company.