Although There Are Some Similarities Between JIT and MRP,identify One

question 37

Multiple Choice

Although there are some similarities between JIT and MRP,identify one major difference below.

• A)production scheduling
• B)reducing the opportunity for inventory theft
• C)reducing inventory carrying costs
• D)requires more analysis than EOQ

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Definitions:

Informal Line

A financial arrangement or credit extension by a bank to a borrower that is not formalized with a detailed contract.

Revolving Credit Agreement

A financial arrangement allowing a borrower to withdraw, repay, and reborrow funds up to a specified credit limit.

Legal Obligation

A duty, established by law, contract, or agreement, which requires an entity or individual to perform or refrain from performing a certain action.

Depreciation

The reduction in the value of an asset over time, due in particular to wear and tear, typically used for tax and accounting purposes.