The most common inventory control system for handling dependent demand inventory is
A) manufacturing resource planning.
B) materials requirement planning.
C) economic order quantity.
D) just-in-time inventory.
E) none of these.

Question

Quizplus · Accepted Answer

Materials requirement planning (MRP) is the most common inventory control system for handling dependent demand inventory. It involves creating a master production schedule based on customer demand and then calculating the materials needed to fulfill that schedule. MRP takes into account lead times for procurement of materials and production times to ensure that the right materials are available at the right time for production. MRP is widely used in manufacturing environments.

The Most Common Inventory Control System for Handling Dependent Demand