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) The quantity of gross requirements for a parent item is equal to the sum of net requirements for all child items.

Question

Quizplus · Accepted Answer

When using lot-for-lot ordering, the quantity of gross requirements for a child item is calculated by multiplying the quantity of planned order release(s) for its parent by the number of child items used in the parent assembly. This ensures that only the necessary amount of product is ordered, minimizing inventory costs.

Which of the Following Statements Is True About the MRP