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

question 130

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 F is TRUE?

• A) The first planned order release is for 205 units in week 3.
• B) Its first planned receipt is for 215 units in week 4.
• C) There will be exactly one action notice, which calls for the release of a new order.
• D) There will be exactly one action notice, which calls for the delay of the scheduled receipt until week 2.

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Definitions:

Government

The organization or system through which a community, state, or nation is governed and regulatory policies are implemented.

Subsidizes

Financial aid supplied by the government to an industry or business so that the price of a commodity or service may remain low or competitive.

Steel

A hard, strong alloy made primarily of iron and carbon, used extensively in construction and manufacturing.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.