Consider the MPS,BOM,and Inventory Data Shown Below Bill of Material:
- Item a Uses 2 Each of the Following

question 71

Essay

Consider the MPS,BOM,and inventory data shown below.
Master Production Schedule: the following table shows the MPS start quantities.
$$\begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Finished Item A } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline& & & & & & & & \\\text { Finished Item A MPS Start } & 20 & & 40 & 30 & & 20 & & 40\\\hline\end{array}$$
Bill of Material:
- Item A uses 2 each of component D,1 each of component C and 2 each of subassembly B.
- Subassembly B uses 2 each of component E.
Selected Inventory Data:
$$\begin{array} { | c | l | c | c | c | } \hline \text { Item } & \begin{array} { c } \text { Lot Size } \\\text { Technique }\end{array} & \text { Lead Time } & \begin{array} { c } \text { Scheduled } \\\text { Receipts }\end{array} & \text { On-Hand } \\\hline { \mathrm { B } } & \mathrm { L } A \mathrm {~L} & 1 & 40 \text { in period 1 } & \\\mathrm { C } & \mathrm { POQ } = 3 & 2 & & 40 \\\mathrm { D } & \mathrm { FOQ } = 250 & 1&160 \text { in period } & 100 \\\mathrm { E } &\mathrm { L } A \mathrm {~L} & 2& 2&\\\hline\end{array}$$
Construct the MRP schedule using the above information.

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Definitions:

Financial Leverage

The use of borrowed money (debt) to finance the purchase of assets, with the expectation that the income or capital gain from the assets will exceed the cost of borrowing.

Voting Right

The entitlement of the shareholders of a company to vote on corporate policy, including decisions regarding the corporate board.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.

Authorized Stock

Authorized stock refers to the maximum number of shares that a corporation is legally authorized to issue according to its corporate charter.