Question 1
Identify a key feature associated with materials requirements planning.
◦ determining economic order quantity for all materials
◦ minimizing or eliminating carrying and stockout costs
◦ determining the optimal reorder points for all materials
◦ reducing required inventory levels by scheduling production, rather than estimating needs
Question 2
How does an MRP inventory system reduces inventory levels?
◦ by reducing the uncertainty regarding when materials are needed
◦ by receiving materials exactly when needed and in exact quantities
◦ by computing the exact costs of purchasing and carrying inventory
◦ None of these