PLEASE CHOOSE ONE ANSWER AND CLARIFY THE CHOICE MADE

Collaborative Planning, Forecasting and Replenishment (CPFR) is a business practice in which multiple trading partners agree to exchange knowledge and share risks to generate the most accurate forecast possible and develop effective replenishment plans. CPFR links sales and marketing processes to supply chain planning and execution processes across multiple trading partners.

**True

**False

MRP systems attempt to support the activities of manufacturing, maintenance, or use by meeting the needs of the master production schedule. To determine needs, MRP systems need an accurate ______________ for each final product or project.

A::enterprise resource planning

B::flow chart of production process

C::bill of materials

D::engineering drawing

Cycle inventory refers to the amount of inventory that a business keeps on hand to meet customer demand between regularly scheduled orders or production runs. It is also known as "batch inventory" or "lot-size inventory." When a business orders or produces goods in batches rather than continuously, it creates cycle inventory. This is because the business needs to maintain a certain level of inventory to satisfy customer demand between batches. When determining lot sizes in which a company buys cycle inventories, trade-off is conducted between:

A::cost of production set up vs cost of purchasing more frequently

B::cost of purchasing more frequently vs cost of shortage

C::cost of carrying extra inventory vs cost of shortage

D::cost of carrying extra inventory vs cost of purchasing more frequently