When would an MRP inventory approach be preferred to a JIT inventory approach?

Question

Quizplus · Accepted Answer

MRP (Material Requirements Planning) is a inventory approach in which material requirements are calculated based on forecasted demand, whereas JIT (Just-in-Time) is an inventory approach in which materials are delivered just in time for production. MRP is preferred when demand for inventory is fairly predictable, as it allows for better planning and scheduling of production. JIT, on the other hand, is preferred when demand is more stable and predictable, as it reduces the need for excess inventory and allows for greater flexibility in production. Therefore, in this scenario, the best choice would be B.

When Would an MRP Inventory Approach Be Preferred to a JIT