Bills of Material Used for MRP Planning in a Lean

question 13

Multiple Choice

Bills of material used for MRP planning in a lean environment are likely to have which of the following characteristics?

• A) fewer "phantom" or "blow-through" assemblies
• B) increased complexity with regard to options
• C) weekly time buckets
• D) no need for where-used references
• E) fewer levels in product structures

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Definitions:

Marginal Cost

The cost of producing an additional unit of output, which is an important factor in economic decision making.

Profit-maximizing Price

The price that results in the maximum possible profit for a firm, based on its cost structure and demand for its products.

Elasticity of Demand

A gauge for understanding how price changes influence the consumer demand for a particular good.

Constant Elasticity

A condition where the elasticity of a function, such as demand or supply, remains unchanged over a range of prices or quantities.