Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?
A) The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
B) The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.
C) The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent.
D) The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent.
E) All of the above are true.
Answer: B