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

question 162

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) .
Master Production Schedule: the following table shows the MPS start quantities.
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
$\begin{array} { | l | c | c | c | c | } \hline \text { Data Category } & \mathrm { C } & \mathrm { D } & \mathrm { E } & \mathrm { F } \\\hline \text { Lot-sizing rule } & \mathrm { L } 4 \mathrm {~L} & \mathrm {~L} 4 \mathrm {~L} & \mathrm { FOQ } = 250 & \mathrm { POQ } ( \mathrm { P } = 2 ) \\\text { Lead time (wks) } & 3 & 1 & 3 & 1 \\\text { Beginning (on-hand) inventory } & 50 & 80 & 90 & 30 \\\text { Scheduled receipts } & 80 ( \mathrm { wk } 1 ) & \text { None } & 250 ( \mathrm { wk } 3 ) & 205 ( \mathrm { wk } 1 ) \\\hline\end{array}$
-Use the information in Table 13.3. Which one of the following statements about item F is TRUE?

• A) Its first planned receipt is for 215 units in week 4.
• B) There will be exactly one action notice, which calls for the release of a new order.
• C) There will be exactly one action notice, which calls for the delay of the scheduled receipt until week 2.
• D) The first planned order release is for 205 units in week 3.

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Definitions:

Pure Monopolist

A market structure in which a single seller dominates the entire market, facing no competition.

Profit-Maximizing Output

The level of production at which a company can achieve the highest possible profit, usually determined by marginal cost and marginal revenue analysis.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, without price discrimination.

Pure Monopolists

Companies that are the sole providers of a product or service in a market, facing no direct competition.