A Materials Requirement Planning System That Manufactures Finished Goods for Inventory

question 106

True/False

A materials requirement planning system that manufactures finished goods for inventory on the basis of demand forecasts can be described as a 'demand-pull' system.

---

Definitions:

Supply Chain

The system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.

Markov Models

A statistical model used to model randomly changing systems where it is assumed that future states depend only on the current state and not on the sequence of events that preceded it.

Transitional Probabilities

The likelihood of moving from one state or condition to another, often used in the context of labor markets, health statuses, or economic conditions.

Promotion

An employee's upward advancement in the hierarchy of an organization.