When there is insufficient inventory to cover the gross requirements for a period
A) an MRP is placed
B) an ERP is placed
C) a planned order is placed
D) a scheduled order is placed
E) a rush order occurs

Question

Quizplus · Accepted Answer

When there is insufficient inventory to cover the gross requirements for a period, a planned order is placed. This planned order is generated through Material Requirements Planning (MRP) or Enterprise Resource Planning (ERP) to ensure that the required amount of inventory is available to meet the demand. A scheduled order refers to the planned release of production orders on the shop floor, and a rush order occurs when a customer needs a product urgently and requires expedited processing. Therefore, the best choice in this scenario is C, a planned order is placed.

When There Is Insufficient Inventory to Cover the Gross Requirements