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Answer: The correct answer is True.

Explanation: Materials Requirement Planning works best if the inventory items have dependent demand. Dependent demand items are components of finished goods. For example, in a bicycle factory one of the inventory items may be tires.

MRP is a system that works backwards, starting with a production plan for finished goods. This is used to develop requirements for components and raw materials needed to produce the final product within the established schedule.

When the inventory items have dependent demand, then the process of MRP works well.

What is MRP?

MRP stands for Material Requirement Planning which helps in determining the number of materials required for producing a product.

MRP is typically derived on the basis of dependent demand which can be resulted due to the requirements of higher-level items of inventory. For instance, the automobile sector requires engines, wheels, and the tires for manufacturing of various kinds of vehicles.

Therefore, the provided statement relating to the application of MRP is true.

Learn more about the MRP in the related link:

https://brainly.com/question/17161846

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