Asked by Martin Cricket on Jul 01, 2024
Verified
The procedures of the firm used to determine the levels for demand-dependent inventory types such as work-in-progress and raw materials are called ____________________.
A) First-in, first-out methods.
B) The Baumol model.
C) Net working capital planning.
D) Economic order planning.
E) Materials requirements planning.
Materials Requirements Planning
A production planning, scheduling, and inventory control system used to manage manufacturing processes.
Net Working Capital
The difference between a company's current assets and its current liabilities, indicating short-term financial health.
- Comprehend the logic in choosing specific inventory management approaches according to business strategy and operational efficiency.
- Understand the impact of market rivalry and attributes of a product on decisions related to credit duration.
Verified Answer
ML
Myriam LatraverseJul 02, 2024
Final Answer :
E
Explanation :
Materials requirements planning (MRP) is the correct answer because it is a system used by firms to calculate the number and timing of materials needed to produce a product. This involves planning for raw materials, components, and parts necessary for production, directly linked to demand forecasts.
Learning Objectives
- Comprehend the logic in choosing specific inventory management approaches according to business strategy and operational efficiency.
- Understand the impact of market rivalry and attributes of a product on decisions related to credit duration.
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