Given the Following MRP Matrix for Item C

question 14

Multiple Choice

Given the following MRP matrix for Item C:

If each order cost $500 and the holding cost is $0.75 per item per period,then using the Periodic Order Quantity lot sizing technique,the Projected on Hand at the end of period 7 would be

• A)330
• B)270
• C)0
• D)140

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Definitions:

Physical Flow

The movement of physical goods or materials within a production process or supply chain.

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.

Units

A measure of quantity representing the amount of product or service.