Given the following MRP matrix for Item E: The projected on hand quantity at the end of period 3 is
A) 0.
B) 100.
C) 300.
D) 500.

Question

Given the following MRP matrix for Item E:  The projected on hand quantity at the end of period 3 is
A) 0. 
B) 100. 
C) 300. 
D) 500.

Quizplus · Accepted Answer

The MRP matrix provides information on the planned production quantities for Item E during each period. The projected on hand quantity at the end of period 3 can be calculated by taking the beginning on hand inventory at the start of period 3 and adding the net planned production quantity for period 3, then subtracting the net demand for period 3.

Beginning on hand inventory at start of period 3: 300 
Net planned production quantity for period 3: 200 
Net demand for period 3: 200

Projected on hand quantity at end of period 3 = Beginning on hand inventory + Net planned production - Net demand 
= 300 + 200 - 200 
= 300

Therefore, the projected on hand quantity at the end of period 3 is 300. Therefore, choice C is correct.

Given the Following MRP Matrix for Item E: the Projected