Which one of the following inventory management approaches determines the finished goods inventory level and then works backwards until the raw material needs are determined?
A)ABC approach
B)materials requirement planning
C)economic order quantity
D)just-in-time
E)extended EOQ

Question

Quizplus · Accepted Answer

The approach described in the question is known as Materials Requirement Planning (MRP). MRP determines the necessary raw materials needed to produce a specific finished good and works backward from the final product. Thus, B is the correct choice. The other options, such as the ABC approach, economic order quantity, just-in-time, and extended EOQ, do not work in this manner.

Which One of the Following Inventory Management Approaches Determines the Finished