MRP Explosion Means Estimating the Total Number of

question 160

Multiple Choice

MRP explosion means estimating the total number of

• A) parts to be produced for each parent item.
• B) parts needed to be produced less the number of parts on hand for each parent item.
• C) raw materials to be purchased from all suppliers.
• D) subassemblies, components, and raw materials needed for each parent item.

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Definitions:

Price Elasticity of Demand

An indicator of the sensitivity of the demand for an item to adjustments in its pricing.

Perfectly Inelastic Demand

Product or resource demand in which price can be of any amount at a particular quantity of the product or resource that is demanded; when the quantity demanded does not respond to a change in price; graphs as a vertical demand curve.

Perfectly Elastic Demand

Product or resource demand in which quantity demanded can be of any amount at a particular product or resource price; graphs as a horizontal demand curve.

Graphed

A method of representing data visually using charts or plots to illustrate relationships between different variables.