Table 133
Consider the Following MPS, BOM, and Inventory Data

question 117

Multiple Choice

Table 13.3
Consider the following MPS, BOM, and inventory data. You will need a blank MRP record to answer the question(s) .
Week
$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Week } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { A } & 50 & & 80 & & & 100 \\\text { B } & & & 60 & & 100 \\\hline\end{array}$
Bill of Material
-End item A uses 1 each of component C and 1 each of subassembly D.
-Subassembly D uses 2 each of component E and 2 each of component F.
-End item B uses 1 each of component C and 2 each of component F.
Selected Inventory Data
Item
$\begin{array} { | l | c | c | c | c | } \hline \text { Data Category } & \mathrm { C } & \mathrm { D } & \mathrm { E } & \mathrm { F } \\\hline \text { Lot-sizing rule } & \mathrm { L } 4 \mathrm {~L} & \mathrm {~L} 4 \mathrm {~L} & \mathrm { FOQ } = 250 & \mathrm { POQ } ( \mathrm { P } = 2 ) \\\text { Lead time (wks) } & 3 & 1 & 3 & 1 \\\text { Beginning (on-hand) inventory } & 50 & 80 & 90 & 30 \\\text { Scheduled receipts } & 80 ( \mathrm { wk } 1 ) & \text { None } & 250 ( \mathrm { wk } 3 ) & 205 ( \mathrm { wk } 1 ) \\\hline\end{array}$

Master Production Schedule: the following table shows the MPS start quantities.
-Use the information in Table 13.3. Which one of the following statements about item E is TRUE?

• A) There will be an action notice to expedite the scheduled receipt up to week 2.
• B) There is one planned receipt for the next 6 weeks.
• C) There is a planned order release of 250 units in week 3.
• D) There is a planned receipt of 250 units in week 2.

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Definitions:

Unearned Rent

Revenue received by a landlord for rent that has not yet been earned because the rental period has not occurred.

Net Income

The net income of a business once all costs and taxes are subtracted from the total earnings.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over the asset's useful life to date.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period, displaying its profitability.