Which of the following statements about a material requirements planning (MRP)system is true?
A) The MRP system can be used to forecast sales.
B) An MRP system cannot be used in JIT programs.
C) The MRP system is most often used to uncover needs or problem areas within an organization's various functional departments.
D) AN MRP system cannot be used to develop a production schedule or to reduce costs.
E) None of the above.

Question

Quizplus · Accepted Answer

A material requirements planning (MRP) system is a computer-based inventory management system that calculates the exact amount and timing of raw material orders needed to manufacture a product. It can also be used to forecast sales and plan production schedules, as well as uncover needs or problem areas within an organization's various functional departments. MRP systems can be used in JIT (just-in-time) programs, but they are not necessary for JIT manufacturing. Therefore, option A is the true statement. Option B, C, D are false statements.

Which of the Following Statements About a Material Requirements Planning