A push-through system that manufactures finished goods for inventory on the basis of demand forecasts is referred to as ________.
A) just-in-time purchasing
B) materials requirements planning
C) relevant total costs
D) economic order quantity

Question

Quizplus · Accepted Answer

A push-through system that manufactures finished goods for inventory on the basis of demand forecasts is called Materials Requirements Planning (MRP). Just-in-time purchasing is a pull system that produces finished goods only when customer demand exists. Relevant total costs and economic order quantity are concepts related to inventory management and ordering strategies, but do not directly relate to the given system.

A Push-Through System That Manufactures Finished Goods for Inventory on the Basis