A similarity between materials requirement planning (MRP)and distribution resource planning (DRP)is that both inventory systems:
A)require the manufacturer to keep inventory levels as high as possible.
B)help manage inventory from manufacturer to end user rather than from the suppliers to the manufacturer.
C)use various inputs,such as sales forecasts,available inventory,and so on,to determine what needs to be done to replenish goods at all points in the supply chain.
D)prohibit the use of buffer stocks as insurance against unexpected demand increases.

Question

Quizplus · Accepted Answer

Both MRP and DRP use various inputs, such as sales forecasts and available inventory, to determine what needs to be done to replenish goods at all points in the supply chain. This allows for efficient management of inventory from manufacturer to end user. Both systems do not require keeping inventory levels as high as possible and may use buffer stocks as insurance against unexpected demand increases, so options A and D are incorrect.

A Similarity Between Materials Requirement Planning (MRP)and Distribution Resource Planning