Which of the following statements concerning MRP system operation is correct?
A) Research has shown that many companies are transitioning from safety stock to safety capacity as a means of dealing with uncertain demand.
B) A properly used MRP system allows for minimal levels of safety stock.
C) Additional safety lead time is a common strategy for reducing inventory levels.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

To the surprise of many managers, little safety stock is needed if the MRP system is properly used. Safety lead time generally means carrying more inventory, and safety capacity has not received widespread attention.

Which of the Following Statements Concerning MRP System Operation Is