Which of the following is true of firms that implement a MRP system?
A) They can often increase their inventory.
B) They are not efficient in responding to customer demands.
C) They can price their products competitively.
D) They use TQM as a subapproach to MRP.

Question

Quizplus · Accepted Answer

Implementing a Material Requirements Planning (MRP) system can allow firms to better manage their inventory and production processes, resulting in higher efficiency and lower costs. This can in turn enable firms to price their products more competitively in the market. Option A is incorrect as MRP systems aim to reduce inventory levels by only producing what is necessary. Option B is also incorrect as MRP systems help firms be more responsive to customer demands through accurate planning and scheduling. Option D is incorrect as Total Quality Management (TQM) is a separate approach to improving operations and is not directly related to MRP.

Which of the Following Is True of Firms That Implement