In an MRP Problem, a Is an MPS Item

question 91

Multiple Choice

In an MRP problem, A is an MPS item. Every A requires 3 B's and 2 C's. Every B requires 5 C's. All lead times are one period. Initial inventory values for all items are 0. Use lot-4-lot method for order quantities for all items. If gross requirement for A is 400 in period 10, what will be the planned-order release for C in period 8?

• A) 800
• B) 1,600
• C) 6,800
• D) 6,000
• E) 1,200

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Definitions:

Net Seller

An entity or individual that sells more of a security, commodity, or currency than they buy over a specified period.

Endowment

Refers to the total resources available to an individual or institution, including talents, wealth, and assets.

Normal Goods

Goods for which demand increases when consumer income rises, and decreases when consumer income falls, showing a direct relationship between income and demand.

Full Income

The total earnings, including all sources of income and gains, not just wages from employment.