Exercise 2-B: True or False, if false explain why.

1. The Master Production Schedule is developed by senior management.
2. The ABC analysis classifies: according to the cost and quantity of units
3. Maintenance costs: includes materials handling, deterioration and storage.
4. Lead time is the manufacturing time of a product.
5. In the Economic Order Quantity (EOQ) Model all costs and delivery time are constant.
6. In the EOQ Model the demand can change.
7. In level production producing the same quantity per time, it is partly produced for the warehouse.
8. The amount of reorder point (ROP) is the one consumed during the lead time.
9. The four basic types of inventory are: Supplies, MROs, raw materials and finished products.
10. The inputs required for the Material Requirements Planning are Bill of Materials, lead time, purchases and inventory records.