Which one of the following statements about MRP is best?
A) MRP uses a level-by-level processing procedure; the component items are processed first.
B) An action notice should be issued if the scheduled receipt in a period is less than the projected on-hand inventory for that period.
C) The periodic order quantity rule introduces remnants that are used as a buffer against uncertainties.
D) The fixed order quantity rule results in remnants.

Question

Quizplus · Accepted Answer

The fixed order quantity rule results in remnants because it requires ordering a set quantity, which may not match the exact demand, leading to leftover inventory.

Which One of the Following Statements About MRP Is Best