In an MRP Problem, a Is an MPS Item

question 10

Multiple Choice

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-for-lot method for order quantities for all items. What is the low level code (LLC) for B and C?

• A) LLC for B is 2 and C is 1
• B) LLC for both B and C are 2
• C) LLC for B is 1 and C is 2
• D) LLC for B is 0 and C is 1
• E) LLC for all items are 1

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Definitions:

Allocation Base

A criterion or standard used to distribute costs among different cost objects, such as departments or products.

Overhead Costs

Indirect costs incurred in the business process, such as rent, utilities, and administrative expenses, not directly attributable to specific products or services.

Complex

Consisting of many different and connected parts; not simple.

Plantwide Overhead Rate

A single, uniform overhead absorption rate used throughout a manufacturing plant or facility.