Exam 20: Material Requirements Planning and Enterprise Resource Planning

The term pegging refers to identifying the parent items that have generated a given set of requirements for a part or subassembly.

A process designed to handle purchasing and scheduling the production of dependent-demand components is:

A master production schedule (MPS)is the principal output developed from MRP systems.

The planned-order releases at one level of an MRP plan determine the gross requirements at the next level down in the bill of material.

Load reports of capacity may be misleading as they do not consider queuing delays.

ERP systems are based on software modules for various functional areas of a business such as purchasing,production planning,and supply chain management.

Given an order cost of $100,a,per period holding cost of $.50,and the following requirements schedule: What is the economic part-period (EPP)for ordering this item?

Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods.

The planning horizon for the master production schedule (MPS)should cover or be longer than the cumulative lead time necessary to produce the end items.

What is the correct sequence to go from the broadest to the most detailed form of operations planning?

Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called:

MRP requires information on inventory on hand,open orders and lead times and purchase orders for each item in stock.

Typically the total cost of ownership (TCO)of ERP systems is clearly detailed and certain at the time a company makes the investment to acquire a system.

MRP II is simply a label for current,more advanced versions of software applications for MRP.

In MRP,"scheduled receipts" are:

Lumpy demand for components required for finished goods results primarily from the periodic scheduling of batch production of the goods.

Which of the following are accurate statements concerning MPS,MRP and capacity requirements planning (CRP)? I)CRP is equivalent to a master production schedule (MPS). II)CRP is needed to determine if an MPS is feasible. III)CRP is an input to MRP. IV)Planned-order releases from MRP are the inputs for CRP.

The part-period method for lot sizing breaks the time periods into smaller units of time to create daily or hourly production schedules.

One of the primary reports of MRP concerns changes to open orders.

Great Product,Ltd.has just received an order for 100 Whozats,which must be ready for delivery at the start of week six.An MRP planner has prepared the following table showing product structure,lead times (orders are lot-for-lot),and quantities on hand: When should an order for Wherezats be released?