Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012 planning (MRP) system, uses (a) demand forecasts for the final products (b) a bill of materials
outlining the materials, components and subassemblies for each final product and (c) the quantities of materials,
components, subassemblies and product stocks to predetermine the necessary outputs at each stage of production.
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