A Demand-Pull System in Which Each Component in a Production

question 23

Multiple Choice

A demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line is referred to as:

• A)just-in-time purchasing.
• B)materials requirements planning.
• C)economic order quantity (EOQ).
• D)relevant total costs.

---

Definitions:

Unanticipated Shortage

An unexpected deficiency or lack of supply, often referring to situations where resources or items are not available in the needed amount.

Supply Item

A term for any single piece of inventory or material used in the operations or maintenance of a facility or system.

Inventory

A list of supplies used regularly and the quantities in stock.

Periodic Supply

A method of inventory resupply that occurs at regular, predetermined intervals.