Which One of the Following Statements About Material Requirements Planning

Multiple Choice

Which one of the following statements about material requirements planning is TRUE?

A) MRP is intended mainly for MRO (maintenance, repair, and operating supplies) items where the demands are not too "lumpy."
B) The more volatile the manufacturing environment, the more likely it is that an MRP installation will be successful.
C) Survey results show that most companies adopting MRP have a purely line flow strategy.
D) The distinctive advantages of MRP are greater when there are many BOM levels, large lot sizes, and a manufacturing environment that is not too volatile.