One of the Three Types of MRP Action Notices Possible

question 48

Multiple Choice

One of the three types of MRP action notices possible is releasing a new order. Which one of the following statements is TRUE about releasing a new order?

• A) Release an order when the first period's gross requirements quantity is equal to zero.
• B) Release a separate order for service parts.
• C) Release an order when there is a nonzero quantity in the scheduled receipt row.
• D) Release an order when there is a nonzero quantity in the first period's planned order release row.

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Definitions:

Payments

The act of transferring money in exchange for goods or services, or to settle debts.

Inventory System

A mechanism for tracking and managing items that a company holds in stock, covering aspects like ordering, storing, using, and selling these goods.

Perpetual

Continuing indefinitely without a predetermined end in the context of perpetual inventory systems that continually update to reflect buying and selling activities.

Credit Period

The amount of time the buyer is allowed in which to pay the seller.