Which of These Correctly Explains the Relationship Between Available to Promise

question 90

Multiple Choice

Which of these correctly explains the relationship between available to promise inventory and the master production schedule for any week beyond the first week of the schedule when production is scheduled? Note that ATP is available to promise, MPS is master production schedule, EI is ending inventory, and OB is orders booked.

• A)ATP = MPS + \(\sum O B\)
• B)MPS = ATP + \(\sum O B\)
• C)ATP = EI + MPS - \(\sum O B\)
• D)MPS = \(\sum O B\) + ATP - EI

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Definitions:

Remedied

In legal terms, remedied refers to the action of correcting or compensating for a wrong or harm that has been suffered, often through monetary compensation or specific performance.

Vicarious Liability

The legal responsibility of one party for the actions of another, typically an employer being liable for the acts of its employees.

Employer

An individual or organization that hires and pays for the services of employees under an expressed or implied agreement, and has the right to control the details of work performance.

Employee

An individual who is hired by a person or business for a wage or salary to perform specific duties.