In an MRP Problem, a Is an MPS Item

question 12

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. Initial inventory values for A is 100, B is 200 and C is 0. Use lot-for-lot method for order quantities for all items. If gross requirement for A is 800 in period 9, what will be the planned order release for B in period 5?

• A) 1,600
• B) 1,400
• C) 700
• D) 800
• E) 1,200

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Definitions:

Production Manager

A professional responsible for overseeing the production process within a manufacturing facility, ensuring that goods are produced efficiently, safely, and meet quality standards.

Responsibility Centre

A unit within an organization, such as a department or division, whose manager is accountable for specific financial and operational outcomes.

Controllable

Refers to costs or factors within a business that can be managed or influenced by decisions made by the company.

Uncontrollable

A term referring to factors or costs that cannot be directly controlled or influenced by decisions in the short term.