Which of the Following Statements About MRP Is True

question 42

Multiple Choice

Which of the following statements about MRP is True?

• A) To be classified as a successful MRP user, a company must use either the L4L or POQ rules for lot sizing.
• B) MRP gross requirements for a parent item are equal to the planned order releases of its components.
• C) MRP logic is based on the logic of uniform, continuous demand, and item independence.
• D) MRP gross requirements for a component depend on the planned order releases of its immediate parents.

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Definitions:

Optimal Consumption Rule

The principle that consumers maximize their utility when the ratio of the marginal utility to the price of goods is equal across all goods.

Maximizing Utility

The process by which individuals allocate their resources to obtain the highest possible level of satisfaction.

Income

The amount of money received by an individual or entity in exchange for labor, services, or investment within a specific period.

Concert Tickets

Access passes purchased by individuals to attend live performances of music or other entertainment events.