A push-through system that manufactures finished goods for inventory on the basis of demand forecasts and produces a master schedule for quantity and timing of units to be produced.
A) just-in-time purchasing
B) materials requirements planning
C) relevant total costs
D) economic order quantity

Question

Quizplus · Accepted Answer

The given system is describing a Materials Requirements Planning (MRP) system which creates a production schedule based on demand forecasts and inventory requirements. MRP helps in planning production and purchasing activities to ensure that the required materials and components are available at the right time and place to support manufacturing activities.

A Push-Through System That Manufactures Finished Goods for Inventory on the Basis