The management at Sad Clown Pajamas,an Internet-based wholesaler,is considering a new inventory control system.The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs.The new system,which will focus on forecasting demand for Sad Clown's products,will employ

Question

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The new system that Sad Clown Pajamas plans to implement, which focuses on forecasting demand for their products, is best suited for materials requirements planning (MRP). MRP takes into account the demand for a product and generates a plan for when and how much of each raw material is needed, minimizing stockouts and excess stock. This system is more appropriate than just-in-time inventory, which requires very precise timing and delivery, and economic order quantity or reorder point, which do not take into account the demand for the product.

The Management at Sad Clown Pajamas,an Internet-Based Wholesaler,is Considering a New