Which of the Following Best Differentiates Material Requirements Planning (MRP)

question 102

Multiple Choice

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS) ?

• A) FCS recognizes the finite nature of capacity while MRP does not.
• B) FCS works in services while MRP does not.
• C) MRP requires time buckets while FCS does not.
• D) FCS is an input into traditional MRP systems.
• E) FCS uses the Wagner-Whitin algorithm while MRP uses lot-for-lot and EOQ.

---

Definitions:

Face Value

The original cost of a bond or stock, as indicated on the certificate; it is also known as the nominal or par value.

Above Face Value

A situation where a financial instrument, such as a bond, is traded for more than its original issue price.

Issued Bonds

Debt securities that a company or government has sold to investors to raise capital.

Premium on Bonds Payable

The excess amount over the face value that investors pay when they purchase a bond, representing an additional cost to the issuer.