A process designed to handle purchasing and scheduling the production of dependent-demand components is:
A)economic part-period (EPP).
B)lot-for-lot (LFL).
C)economic order quantity (EOQ).
D)material requirements planning (MRP).
E)economic run size (ERS).

Question

Quizplus · Accepted Answer

Material requirements planning (MRP) is a process designed to handle purchasing and scheduling the production of dependent-demand components. It is a computer-based system that uses information from the bill of materials, inventory records, and the master production schedule to calculate requirements for materials. MRP helps in managing dependent demand items like raw materials, parts, and components, by ensuring that they are available when needed for production.

A Process Designed to Handle Purchasing and Scheduling the Production