Which Statement on MRP Explosion Is Best

question 63

Multiple Choice

Which statement on MRP explosion is best?

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

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Definitions:

Elasticities

Measures of how much the quantity demanded or supplied of a good responds to changes in prices, income, or other factors.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels at a given point in time.

Supply

The total amount of a specific good or service available for purchase at any given price level, influenced by costs, technological innovations, and other factors.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.