MRP works best if the inventory items have dependent demand.Group startsTrue or False

Answer: True

Material Requirements Planning (MRP) is indeed designed to work most effectively when the inventory items have dependent demand. Dependent demand refers to items whose demand is directly tied to the demand of other items, typically finished goods or parent items.

In MRP systems, dependent demand allows for better planning of inventory levels, as the system can forecast the necessary quantities of components based on the master production schedule of the final products. This helps businesses manage inventory more efficiently and reduces the likelihood of excess stock or stockouts. MRP leverages bill of materials, lead times, and inventory levels to streamline production and procurement processes, optimizing both efficiency and resource use.

Thus, the statement is true; MRP is best suited for inventory items with dependent demand.