The objective of a(n)________ system is to reduce costs by integrating all of the operations of a firm.
A)MRP
B)ERP
C)JIT
D)VMI
E)EOQ

Question

Quizplus · Accepted Answer

The objective of an ERP (Enterprise Resource Planning) system is to integrate all the operations of a firm such as finance, procurement, manufacturing, logistics, and human resources. By doing so, it helps reduce costs by eliminating redundancy, improving communication, and providing real-time data to facilitate better decision making. MRP (Material Requirements Planning) is a similar system but focuses only on the manufacturing operations while JIT (Just-in-Time) and VMI (Vendor Managed Inventory) are inventory management systems that aim to reduce inventory holding costs. EOQ (Economic Order Quantity) is a mathematical formula used to determine the optimum order quantity of inventory but it is not a system in itself.

The Objective of A(n)________ System Is to Reduce Costs by Integrating