A computer-based information system designed to manage dependent demand inventory is _____________.
A) manufacturing resources planning
B) multifunctional requirements planning
C) material relationships planning
D) material requirements planning
E) manufacturing requirements planning

Question

Quizplus · Accepted Answer

Material requirements planning (MRP) is a computer-based information system that is designed to manage dependent demand inventory. MRP uses the master production schedule (MPS) and the bills of materials (BOM) to calculate the materials required for production, and it generates production and purchasing plans accordingly. MRP is a critical tool for manufacturing companies to ensure that they have the right materials at the right time to meet production demand. A, B, C, and E are not correct because they are either not relevant or do not accurately describe MRP.

A Computer-Based Information System Designed to Manage Dependent Demand Inventory