A material requirements planning (MRP)system serves as both an inventory control system and as a production scheduling system.

Question

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A material requirements planning (MRP) system uses information about the demand for finished products, the inventory of raw materials and components, and the lead times for obtaining these materials to generate a master production schedule and a materials plan. This system helps to ensure that the right materials are available at the right time and in the right quantities to meet production requirements.

A Material Requirements Planning (MRP)system Serves as Both an Inventory