Question: A company uses the Fixed Order Quantity method for ordering inventory. For a particular month, a department needs to order 135 pieces of a particular

  1. A company uses the Fixed Order Quantity method for ordering inventory. For a particular month, a department needs to order 135 pieces of a particular item. The vendor offers the items in bundles of 25 pieces each.

    How many bundles does the department manager have to buy?

    6

    4

    8

    7

    5

  2. Which of the following is true about the Bill of Materials (BOM)?

    It is an essential input into an MRP system.

    It contains the complete product description, including information concerning raw materials as well as the sequence required to create the product.

    It is often called a product tree as it shows how a product is put together.

    (B) & (C) are true.

    All of the above are true.

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