A computerized system for setting raw material inventory levels that starts with projecting the number of ﬁnished goods to be manufactured is generally referred to as:

Question

Quizplus · Accepted Answer

The system described in the question is Materials requirements planning (MRP), which is a computerized system that uses bill of materials data, inventory data, and master production schedule to calculate requirements for materials. MRP starts with projecting the number of finished goods to be manufactured and then determines the raw materials needed to produce the finished goods. Options A, B, D, and E are not appropriate choices as they do not accurately describe the system described in the question.

A Computerized System for Setting Raw Material Inventory Levels That