Which of the following inventory ordering techniques would a company's corporate warehouse utilize if it is interested in meeting both the quantity and timing requirements of demand from its regional warehouses?
Which of the following inventory ordering techniques would a company's corporate warehouse utilize if it is interested in meeting both the quantity and timing requirements of demand from its regional warehouses?
Distribution requirements planning (DRP) is the appropriate technique for a corporate warehouse that aims to meet both the quantity and timing requirements of demand from its regional warehouses. DRP uses the logic of Material Requirements Planning (MRP) to determine the necessary replenishments at branch warehouses based on the orders they receive. This ensures that inventory levels and timings are aligned with demand, which is essential for an efficient supply chain.
A is the answer. DRP is the function of determining the need to replenish at branch warehouses using MRP logic against orders received at the branch warehouse. Kanban is a JIT pull system used on the warehouse floor that depends on visual cards or sign boards.
A is the right answer
Since they mentioned inventory ordering techniques in the question, Kanban (Japanese for sign) is an inventory control system used in just-in-time (JIT) manufacturing to track production and order new shipments of parts and materials. I think Kanban is the right answer.