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:

Negotiated Agreement

A mutual arrangement or contract reached through discussion and compromise between parties.

Non-Rational Escalation

The phenomenon of continuing a course of action even when it is not in one's best interest, disregarding rational analysis.

Ego

The part of the psyche that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Face Saving

Actions or strategies designed to preserve one's reputation or respect in the face of potential embarrassment or shame.