Final answer:
The MRP type set to utilize reorder point planning corresponds to Safety Stock Planning, which triggers stock replenishment when inventory levels meet a predetermined threshold.
Step-by-step explanation:
If the MRP type is set to use reorder point (ROP) planning, the planning process utilized is Safety Stock Planning. This inventory management strategy involves maintaining a predetermined amount of stock, which is referred to as the reorder point. When the inventory level falls to this point, it triggers an action to replenish the stock, ensuring that there is always a buffer of inventory available to meet demand and avoid stockouts.
Options like Just-in-Time (JIT) and Material Requirements Planning (MRP) represent different planning processes. JIT aims to minimize inventory and receive goods only as they are needed in the production process, whereas MRP is a more complex system designed to manage materials and schedule production. The Economic Order Quantity (EOQ) model is used to determine the optimal order quantity that minimizes total inventory costs.