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A manufacturing firm prepares the following materials requirement plan (MRP): Master Production Schedule Week123456 Item A101015152020 Relevant Information ItemItem's ParentItem's Lead TimeItem's Lot SizeItem's Current Inventory ANone1 weekLFL50 BA2 weeks5010 CB2 weeks5010 Using MRP methodology, how much of Item B should be ordered, and when should it be ordered7
Correct Answer: D
According to MRP, with a lead time of 2 weeks for Item B and current inventory insufficient to meet future demands, ordering 50 items in week 2 ensures availability for production needs in weeks 4 and beyond, following the lot-for-lot (LFL) order policy.