Final answer:
Material requirements planning (MRP) is a push system that calculates component requirements based on forecasted demand for finished products. The correct option is A.
Step-by-step explanation:
Material requirements planning (MRP) is an example of a push system.
This means that production and inventory decisions are based on forecasts and anticipated customer demand. In a push system, products are pushed through the supply chain based on the forecasted demand.
MRP works by calculating the requirements for each component or raw material based on the demand for the finished product. It takes into account factors such as lead times, quantities required, and existing inventory levels.
For example, let's say a company manufactures bicycles. MRP would calculate the quantity of each component needed, such as frames, wheels, and handlebars, based on the forecasted demand for bicycles.
It would then generate a production schedule to ensure that the necessary components are available when needed. The correct option is A.