Which of the following statements on MRP is TRUE?
A) The payoffs from MRP tend to be greater when there are more BOM levels and larger lot sizes.
B) When MRP systems are enhanced to include financial reporting they are called basic MRP systems, or "little mrp."
C) The fixed order quantity (FOQ) eliminates remnants.
D) MRP is an inventory control system that derives the gross requirements of the end items from purchase commitments with vendors.

Question

Quizplus · Accepted Answer

MRP (Material Requirements Planning) systems are more beneficial and show greater payoffs when dealing with complex products that have multiple levels in their Bill of Materials (BOM) and when managing larger lot sizes, as they help in efficiently planning and scheduling production and inventory.

Which of the Following Statements on MRP Is TRUE