A Master Production Schedule Quantity of 300 Units Will Arrive

question 26

Multiple Choice

A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3, and 4. What is available to promise for week 6?

• A)50
• B)6
• C)300
• D)100
• E)cannot be determined without projected on-hand information

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Definitions:

Investee

An entity in which an investor holds a minority stake, without controlling interest.

Decision-making Authority

The power or right to make decisions regarding policies, procedures, or spending in a business or organization.

Agent

A party primarily engaged to act on behalf of and for the benefit of another party or parties (the principal(s)) which therefore does not control the investee when it exercises its decision-making authority.

Variable Returns

Returns from an investment that fluctuate over time due to market conditions or other factors.