Significant differences between the book quantity of


Your company has not managed inventory very well and there are often significant differences between the book quantity of inventory and the physical quantity of inventory in the stock room. If the physical quantity is greater than the book quantity and the MRP orders by the book quantity, when placing an order your company is most likely to have:    

A. too little inventory on hand when the order arrives        

B. just the right amount of inventory on hand when the order arrives         

C. too much inventory on hand when the order arrives.    

D. cannot tell from the information provided.         

A MPS provides which of the following:

A. how much material will be required to complete the order.        

B. uncommitted inventory               

C. instructions on how to build the order  

D. how much labor will be required to complete the order.

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Operation Management: Significant differences between the book quantity of
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