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In an MRP Problem, a Is an MPS Item

question 12

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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?

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Definitions:

Black-Scholes

A model used to price European options, calculating the theoretical price for derivatives based on factors like volatility, time, and the risk-free rate.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, indicating how much individual values within a data set differ from the mean or average value.

Hedge Ratio

The ratio of the value of a hedge (protective investment) to the value of the underlying assets, indicating the part of the asset's risk that is being mitigated.

Hedged Portfolio

An investment portfolio that uses strategies to offset potential losses or gains, aiming to reduce the risk of adverse price movements in its assets.

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