A service facility like a hospital cannot use material requirements planning concepts and methods such as bills of labor (BOL) and the concept of dependent demand.

Question

Quizplus · Accepted Answer

While it is true that hospitals cannot use bills of materials (BOM) since they do not deal with physical products, they can use bills of labor (BOL) to plan for the time and resources needed for each patient. Additionally, the concept of dependent demand is applicable in the healthcare setting when planning for the demand of medical supplies, medications, and equipment based on the demand for specific treatments or procedures.

A Service Facility Like a Hospital Cannot Use Material Requirements