__________ works best when inventory items are not dependent on one another.
A) Materials requirement planning
B) Economic order quantity
C) Manufacturing resource planning
D) All of these
E) None of these

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is a method of inventory management that calculates the ideal quantity of goods to order at a time to minimize inventory costs. It assumes that inventory items are not dependent on each other, meaning that the demand for one item does not affect the demand for another. Therefore, EOQ is the best choice for inventory management when items are not dependent on one another. Materials requirement planning (MRP) and manufacturing resource planning (MRP II) are more advanced inventory management systems that take into account the interdependencies of inventory items, making them less suitable for situations where items are not independent.

__________ Works Best When Inventory Items Are Not Dependent on One