The XYZ Company has just hired you as Production Manager of their North American Fabrication Facility. Your first job is to use the MRP methodology to schedule production for the next nine weeks. The XYZ Company has given you the following information to work with: Bill of Materials and Current Inventory Records:

Item

Parent

Leadtime (in weeks)

Lotsize

Inventory Currently On-hand

A

none

1

Lot-for-Lot

0

B

A

2

Lot-for-Lot

0

C

A

3

100

52

Master Production Schedule:

Item

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

A

0

0

0

15

0

60

0

36

75

You may assume one-to-one parent/child requirements when assembling this particular product structure. Which of the following are true statements about Week 3 of your plan?

I. An order of 15 of Item B will be received.

II. An order for 60 of Item B will be placed (planned order release).

III. There will be 66 of Item C in inventory at the end of Week 3.