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

Question

Quizplus · Accepted Answer

MRP (Material Requirements Planning) is more beneficial when there are multiple levels in the Bill of Materials (BOM) and larger lot sizes, as it helps in planning and scheduling production efficiently.

Which of the Following Statements on MRP Is TRUE