What information system enables companies to have the right material in the right amounts available at the right time?
A) manufacturing resources planning
B) multifunctional requirements planning
C) material requirements planning
D) material relationships planning
E) manufacturing requirements planning

Question

Quizplus · Accepted Answer

Material requirements planning (MRP) enables companies to have the right material in the right amounts available at the right time. MRP is a computerized inventory control and production planning system that determines the quantities of each raw material, component, and subassembly needed to produce a finished product in the required time frame. MRP takes into account the demand for the final product, the production lead time, and the bill of materials (BOM) or the list of raw materials needed for each subassembly of the final product. By using MRP, companies can optimize their inventory levels, reduce waste, and avoid stockouts or overstocking.

What Information System Enables Companies to Have the Right Material