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:

Positive Output

Production of goods or services in a quantity that exceeds zero.

Short-Run Cost Function

A mathematical relation describing how production costs change with output levels over a short period, where some inputs are fixed.

Positive Amount

A numerical value greater than zero, indicating a quantity that is present or an action that increases size or quantity.

Price

The cash expenditure required, anticipated, or transmitted in exchange for a good.