In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-for-lot method for order quantities for all items. If gross requirement for A is 500 in period 8, what will be the planned order release for B in period 4?
A) 0
B) 1,000
C) 500
D) 1,500
E) 6,500

Question

Quizplus · Accepted Answer

The planned order release for B in period 4 is 1,000 because A requires 2 B's, so for 500 A's, 1,000 B's are needed. With a lead time of 2 periods, the order for B must be released in period 4 to meet the requirement in period 8.

In an MRP Problem, a Is an MPS Item