Which of the following inventory management systems works in conjunction with production schedules to determine the exact level of raw materials and work-in-process that must be on hand to meet finished goods demand?
A) The ABC Approach
B) Just-in-time (JIT) inventory system
C) Material Requirement Planning (MRP)
D) Economic Order Quantity (EOQ) Model

Question

Quizplus · Accepted Answer

Material Requirement Planning (MRP) is designed to meet production schedules by determining the precise amount of materials and work-in-process inventory needed to match finished goods demand. It integrates production planning and inventory control to ensure that materials are available for production and products are available for delivery to customers, minimizing inventory levels at the same time.

Which of the Following Inventory Management Systems Works in Conjunction