The Primary Output of a Materials Requirements Planning (MRP) System

question 63

Multiple Choice

The primary output of a materials requirements planning (MRP) system is a time-phased report that gives all of the following EXCEPT:

• A) the facilities managers a detailed schedule for acquiring additional factory space.
• B) the accounting and financial functions production information that drives cash flow, budgets, and financial needs.
• C) the production managers a detailed schedule for manufacturing the product and controlling manufacturing inventories.
• D) the purchasing department a schedule for obtaining raw material and purchased items.

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Definitions:

Short Run

A period in economic analysis during which some factors of production or inputs are fixed, limiting the ability of the economy or firm to adjust.

Long Run

A timeframe in economic analysis where all inputs can be adjusted, allowing for the analysis of long-term strategic planning.

This Firm

A term often used in economic models or discussions to represent a generic company or business under analysis.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.