Table 133
Consider the Following MPS, BOM, and Inventory Data

question 14

Multiple Choice

Table 13.3
Consider the following MPS, BOM, and inventory data. You will need a blank MRP record to answer the question(s) .
Master Production Schedule: the following table shows the MPS start quantities.
Week
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Week } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { A } & 50 & & 80 & & & 100 \\\text { B } & & & & 60 & & 100 \\\hline\end{array}$$
Bill of Material
-End item A uses 1 each of component C and 1 each of subassembly D.
-Subassembly D uses 2 each of component E and 2 each of component F.
-End item B uses 1 each of component C and 2 each of component F.
Selected Inventory Data
Item
$$\begin{array} { | l | c | c | c | c | } \hline \text { Data Category } & \mathrm { C } & \mathrm { D } & \mathrm { E } & \mathrm { F } \\\hline \text { Lot-sizing rule } & \mathrm { L } A \mathrm {~L} & \mathrm {~L} A \mathrm {~L} & \mathrm { FOQ } = 250 & \text { POQ (P = } \\\text { Lead time (wks) } & 3 & 1 & 3 & 2 ) \\\text { Beginning (on-hand) } & 50 & 80 & 90 & 1 \\\text { inventory } & 80 ( \text { wk 1) } & \text { None } & 250 ( \text { wk } 3 ) & 30 \\\text { Scheduled receipts } & & & \text { wk 1) } \\\hline\end{array}$$
-Use the information in Table 13.3.Which one of the following statements about item C is TRUE?

• A) It has a planned receipt of 80 units in week 3.
• B) Its second planned order release is for 200 units in week 3.
• C) It has a planned receipt of 180 units in week 6.
• D) Its first planned order release is for 130 units in week 1.

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Definitions:

Inventories

Quantities of goods in stock that are held by a business for the purpose of sale or production.

Retrospective Adjustment

An accounting practice where prior period financial statements are adjusted to reflect changes in accounting policies or correction of errors as if the new policy had always been applied.

Financial Statements

Reports that provide an overview of a company's financial condition, performance, and cash flows.

Cumulative Effect

The total change in financial statement results over a period of time due to an accounting principle change or correction of an error.