In an MRP Problem, a Is an MPS Item

question 49

Multiple Choice

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-4-lot method for order quantities for all items. If gross requirement for A is 500 in period 8, what will be the planned order release for B in period 4?

• A) 0
• B) 1,000
• C) 500
• D) 1,500
• E) 6500

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Definitions:

Output

The total amount of products or services produced by a company or economy in a given period.

Efficiency

The measure of how well resources are used and allocated to achieve a specific outcome with minimal waste.

Patent

A legal right granted to an inventor or assignee, giving them exclusive rights to manufacture, use, or sell an invention for a certain number of years.

X-inefficiency

This occurs when a firm does not produce output at the lowest possible cost due to inefficiencies within the organization.