Working Capital Flashcards
1
Q
Materials Requirements Planning (MRP) system
A
Materials requirement planning (MRP) is a technique for determining the amount and timing of the components used in the production process.
2
Q
Critical Path Method (CPM) system
A
CPM is used in the management of large projects. CPM determines the path that requires the most time because if activities on that path are delayed for any reason, the entire project will be delayed. Activities on the critical path are called critical activities for the project.
3
Q
Economic Order Quantity (EOQ) system
A
The EOQ model is the order quantity that balances between order costs and carrying costs.
4
Q
ABC system
A
An ABC system is used to gain better control over those inventory items that produce the most profit.
