Which of the following is not a type of inventory?

Table of Contents

a) Work-in-process
b) MRP
c) Raw material
d) Finished goods

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The Correct Answer is b) MRP

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Material Requirement Planning (MRP)

MRP is an inventory control, production planning, scheduling, and scheduling system. MRP systems are usually software-based, but it is also possible to do MRP by hand. Material requirements planning (MRP) is a computerized inventory management system designed to boost productivity.

Major Objectives of MRP

Make sure raw materials are available for production and products are available for delivery.
Always keep inventory levels as low as possible.
Schedule manufacturing activities, delivery schedules, and purchases.

Advantages of MRP

Lower production costs allow an organization to charge a competitive price for its products.
Inventory levels are low, especially for in-process materials.
More responsive to market needs.
More responsive to customer needs.
Lowered setup and teardown costs.
Optimised scheduling and tracking of materials.
More efficient capacity allocation.

Disadvantages of MRP

High implementation costs and technical difficulty. A MRP system will require organizations to spend considerable time and resources in order to install the necessary equipment (computers), train staff, modify the software to suit their specific needs, validate, test, and eliminate possible errors, and maintain the system.
Planned and implemented MRP systems typically take a lot of time.
Training and education of the personnel are essential elements of data entry and file maintenance.
Depending on forecast values or estimated lead times can sometimes lead to misunderstandings.

Capacity Requirement Planning – Inventory Management | Operations Management

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Smirti

(Founder of Management Notes)
MBA,BBA.

I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.

I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,

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Which of the following is not a type of inventory?