Which of the following statements best defines a materials requirements planning system?
A) a demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line
B) a push-through system that manufactures finished goods for inventory on the basis of demand forecasts
C) a demand-pull system that manufactures finished goods for inventory on the basis of demand forecasts
D) a push-through system in which each component in a production line is produced immediately as needed by the next step in the production line

Question

Quizplus · Accepted Answer

A materials requirements planning (MRP) system is a push-through system that manufactures finished goods for inventory based on demand forecasts. It plans the manufacturing process by determining the quantity of materials and components needed to meet the forecasted demand.

Which of the Following Statements Best Defines a Materials Requirements