A computerized inventory system that simulates needed materials requirements for the finished product, and then compares production needs to available inventory balances to determine when orders should be placed is the ________.
A) basic economic order quantity system
B) materials requirement planning system
C) just-in-time system
D) red-line method

Question

Quizplus · Accepted Answer

A materials requirement planning system is designed to plan and control materials usage in the production process. It takes into account the bill of materials for each finished product, the inventory levels of each required material, and the production schedule to determine when materials need to be ordered. This helps to ensure that there is a sufficient supply of materials to meet production demands without excessive inventory holding costs. The other options (A, C, and D) are different inventory management techniques that may be used in conjunction with a materials requirement planning system, but they do not provide the same level of detailed planning and control.

A Computerized Inventory System That Simulates Needed Materials Requirements for the Finished