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

question 80

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 on item C is TRUE?

• A) There will be no action notices for item C.
• B) There will be exactly one action notice, to release a new order.
• C) There will be exactly two action notices, to release a new order and delay the scheduled receipt.
• D) There will be more than two action notices.

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Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at promoting competitive markets by prohibiting certain business activities that reduce competition.

Credit Sales

Transactions where goods or services are provided to the buyer with the agreement that payment will be made at a later date.

Sherman Act

A foundational U.S. antitrust law enacted in 1890, aimed at prohibiting monopolistic practices and promoting competitive markets.

Monopoly Power

The exclusive control by one company over the entire supply of goods or services in a particular market.