Under which one of the following circumstances can an MRP system be used to its best advantage?
A) when the item's demand depends only on customer demand
B) when the item's demand is uniform
C) when the item's demand is constant
D) when the item's demand depends on the production plans of its parent(s)

Question

Quizplus · Accepted Answer

An MRP system is best used when the item's demand depends on the production plans of its parent(s). In such cases, the MRP system can help to ensure that the necessary components and materials are available at the right time to meet the production schedule. In other scenarios, such as when the demand is uniform or constant, other inventory control methods may be more suitable.

Under Which One of the Following Circumstances Can an MRP