Table 134
Consider the MPS, BOM and Inventory Data Shown Below

question 170

Multiple Choice

Table 13.4
Consider the MPS, BOM and inventory data shown below. Master Production Schedule: the following table shows the MPS start quantities.
Week
$$\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Week } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { MPS } & & & 80 & 80 & & \\\hline\end{array}$$
Bill of Material
-Item A uses 1 each of component D, 2 each of component C and 2 each of subassembly B.
-Subassembly B uses 1 each of component D.
Selected Inventory Data
Item
$\begin{array}{|l|l|l|l|}\hline \text { Data Category } & {\text { B }} &{\mathrm{C}} & {\mathrm{D}}\\\hline \text { Lot-sizing rule } & {\text { LAL }} &\mathrm{F} O Q=180 & \mathrm{POQ}(\mathrm{P}=2) \\\text { Lead time (wks) } & 1&1 & 2 \\\text { Beginning (on-hand) } & 30 &160 & 50\\\text { inventory } & 190 \text { (wk 2) } &180(\text { wk } 11) & 80(\text { wk } 1) \\\text { Scheduled receipts } &\\\hline\end{array}$
-Use the information in Table 13.4.Which one of the following statements concerning item B is TRUE?

• A) The projected on-hand quantity at the end of week 6 is 60 units.
• B) There are exactly 2 planned order releases.
• C) The first planned order release occurs in week 3.
• D) There are no action notices needed.

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