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:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at set prices.

Price Of Scone

The amount of money charged for a single scone, determined by factors like production costs, demand, and supply.

Rises

Rises refers to an increase or upward movement in quantity, value, or level of a given entity or phenomena.

Opportunity Cost

The cost of missing out on the second-best choice when making a decision.