When Would an MRP Inventory Approach Be a Preferred to a JIT

question 84

Multiple Choice

When would an MRP inventory approach be a 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:

Monopolistically Competitive Industry

A market structure characterized by many producers selling differentiated products, leading to competition based on product features as well as price.

ATC

The total cost per unit of output, calculated by dividing the total cost by the amount of output produced.

Long-Run Equilibrium

A state in which all factors of production are fully adjusted to the economic conditions, leading to a situation where there is no tendency for change.