Question

Materials requirements planning (MRP)

A) reduces the uncertainty about when materials are needed, thereby reducing the need to carry large levels of inventory.
B) is able to compute exactly the cost of purchasing by taking into account all costs associated with inventory carrying.
C) requires vendors to deliver inventory to the production site exactly when needed and in the correct quantities.

Answer 1

Answer: Option C

Step-by-step explanation:

Material resource planning is a planning tool used in a production company to plan and calculate the required materials for production at the right quantity and right time.

Option C is the best answer because MRP is always used in manufacturing companies and production companies to plan materials resources at the right quantity and price. With this planning, a vendor can deliver the right materials at the correct quantity as option c states