Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?
A) The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
B) The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.
C) The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent.
D) The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent.
E) All of these are true.

Question

Quizplus · Accepted Answer

When using lot-for-lot ordering in MRP, the quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. This means that only the exact amount needed to fulfill the parent assembly's requirements for the child item will be ordered.

Which of the Following Statements Is TRUE About the MRP