In an MRP Problem, a Is an MPS Item

question 44

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.Initial inventory values for A is 100, B is 200 and C is 0.Use lot-4-lot method for order quantities for all items.If gross requirement for A is 800 in period 9, what will be the planned order release for B in period 5?

• A)1600
• B)1400
• C)700
• D)800
• E)1200

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Definitions:

Units Sold

The total number of units of product sold by a company during a reporting period.

Selling Price

The amount of money a customer pays to purchase a product or service.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed expenses and contribute to profit.

Product Costs

The total costs incurred to create a product, including direct materials, direct labor, and manufacturing overhead expenses.