A computerized inventory system that simulates needed materials requirements for the finishedproduct, and then compares production needs to available inventory balances to determine whenorders should be placed is the
A) just-in-time system.
B) materials requirement planning system.
C) red-line method.
D) basic economic order quantity system.

Question

Quizplus · Accepted Answer

The described system is a materials requirement planning (MRP) system, which is designed to manage inventory levels and production processes. The system calculates the necessary materials for production and compares them to inventory levels to determine when orders should be placed. This supports efficient inventory management and production planning. The other options (just-in-time system, red-line method, and basic economic order quantity system) do not fully capture the described system's capabilities and features.

A Computerized Inventory System That Simulates Needed Materials Requirements for the Finishedproduct