The Projected On-Hand Inventory in the MPS Takes into Account

question 68

True/False

The projected on-hand inventory in the MPS takes into account scheduled receipts, but not planned receipts.

---

Definitions:

ABC Analysis

A method of categorizing inventory into three classes, with 'A' items being of high value, 'B' items of moderate value, and 'C' items of lower value, to prioritize inventory management efforts.

Pareto's Law

Also known as the 80/20 rule, it states that for many events, roughly 80% of the effects come from 20% of the causes, applicable in various contexts including economics and business.

Batching Economies

Cost advantages gained by producing or purchasing goods in large quantities at once.

Cycle Stocks

Inventory that companies hold to meet normal sales demand, as opposed to inventory held in anticipation of peak demand or for buffering against supply chain uncertainties.