The objective of a(n)________ system is to reduce costs by integrating all of the operations of a firm.
A)MRP
B)ERP
C)JIT
D)VMI

Question

Quizplus · Accepted Answer

ERP (Enterprise Resource Planning) system integrates all the operations of a firm including manufacturing, purchasing, sales, and inventory management. By doing so, it helps to reduce costs by eliminating duplication of efforts and streamlining processes. MRP (Material Requirements Planning) system focuses on managing inventory levels by forecasting demand for materials, JIT (Just-in-Time) system focuses on reducing inventory holding costs by receiving materials only when needed, and VMI (Vendor Managed Inventory) system focuses on reducing inventory levels by allowing suppliers to manage customer inventory. While these systems may also contribute to cost reduction, they do not integrate all the operations of a firm like an ERP system.

The Objective of A(n)________ System Is to Reduce Costs by Integrating