In an MRP Problem, a Is an MPS Item

question 91

Multiple Choice

In an MRP problem, A is an MPS item. Every A requires 3 B's and 2 C's. Every B requires 5 C's. All lead times are one period. Initial inventory values for all items are 0. Use lot-4-lot method for order quantities for all items. If gross requirement for A is 400 in period 10, what will be the planned-order release for C in period 8?

• A) 800
• B) 1,600
• C) 6,800
• D) 6,000
• E) 1,200

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Definitions:

Foreign Exchange

The trading of currencies from different countries, determining the exchange rates based on supply and demand.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase.

Domestic Market

The marketplace within a country's borders where goods and services are bought and sold, as opposed to international or export markets.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess its relative purchasing power.