The procedures of the ﬁrm used to determine the levels for demand-dependent inventory types such as work-in-progress and raw materials are called ____________________.

Question

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The procedures used by a firm to determine the levels for demand-dependent inventory types such as work-in-progress and raw materials are called Materials Requirements Planning (MRP). First-in, first-out methods and Economic order planning are inventory costing methods. The Baumol model is used to determine the optimal cash balance for a firm, and Net working capital planning is a financial management technique used to ensure a company has enough current assets to meet its current liabilities.

The Procedures of the ﬁRm Used to Determine the Levels