Capacity Planning in Closed-Loop MRP

question 16

Multiple Choice

Capacity planning in closed-loop MRP:

• A)utilizes feedback about workload from each work center.
• B)may make use of resource requirements profiles (load reports).
• C)may smooth work center loads with such tactics as overlapping and lot splitting.
• D)does not add capacity,but rather seeks effective use of existing capacity.
• E)All of the above are true.

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Definitions:

Fees Earned

Income received from providing services, representing one of the primary sources of revenue for service-oriented businesses.

Accounts Receivable

Outstanding payments from customers to a firm for delivered goods or services awaiting settlement.

Adjusting Entry

An accounting record made at the conclusion of a financial period to distribute revenue and expenses to the correct period of their occurrence.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.