Which is true of a net-change system?
A) It is a batch-type system which is updated periodically.
B) It is usually run at the beginning of each month.
C) The basic production plan is modified to reflect changes as they occur.
D) It is used to authorize the execution of planned orders.
E) It indicates the amount and timing of future changes.

Question

Quizplus · Accepted Answer

A net-change system is a type of production planning system that updates the basic production plan to reflect changes as they occur, rather than being run at set intervals like a batch system. It helps to improve the accuracy of planning by considering only the changes that have occurred since the last update. Therefore, option C is the correct choice. Options A, B, D, and E do not accurately describe a net-change system.

Which Is True of a Net-Change System