Questions
MGS*3100*W10 25 Fall OM Exam 3 - Requires Respondus LockDown Browser
Single choice
If projected on-hand = ending inventory of last week + receipts – gross requirements, then a negative result means:
Options
A.Excess inventory
B.A planned order is needed
C.Master Production Schedule must be reduced
D.The Bill of Materials is incorrect
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Step-by-Step Analysis
In this inventory calculation, projected on-hand = ending inventory of last week + receipts – gross requirements. When this result is negative, it means that the planned supply (ending inventory plus incoming receipts) is not enough to meet the gross requirements, i.e., a shortage exists.
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