Question 1

Given the following bill of material   If the demand for product A is 50 units, what will be the gross requirement for component E?

Accepted Answer

A)  4 
B)  100 
C)  200 
D)  250 
E)  300 
A)  4 
B)  100 
C)  200 
D)  250 
E)  300 E

Question 2

A product has the following gross requirements. Which is cheaperlot-for-lot, part period balance, or EOQ lot sizing?
   Other data for this scenario include: setup cost = $250, inventory holding cost $2 per unit per week. There is no beginning inventory; there are no scheduled receipts. The usage pattern is expected to continue for the remainder of the year.

Accepted Answer

Lot-for-lot will cost $250 x 6 = $1,500 for the six periods.
EOQ is based on 360/6 = 60 units per week average demand:   = 122
Annual setup costs =   ∙ 250 + $6,393;
Annual holding costs =   ∙ 2 ∙ 52 = $6,344
Total annual costs = $12,737; Cost for six weeks = 12,737 ∙   = $1,469
For part-period balancing, the EPP=250/2 = 125. Total cost for PPB over the six periods is $1,210.
   Summary of costs: LFL = $1,500; EOQ = $1,469; PPB = $1,210. PPB is cheapest lot-sizing model for this problem.

Question 3

Which of the following statements best compares modular bills and phantom bills?

Accepted Answer

A)  Both pertain to assemblies that are not inventoried. 
B)  There is no difference between the two. 
C)  Both pertain to assemblies that are inventoried. 
D)  Modular bills are used for assemblies that are not inventoried, unlike phantom bills. 
E)  Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried. 
A)  Both pertain to assemblies that are not inventoried. 
B)  There is no difference between the two. 
C)  Both pertain to assemblies that are inventoried. 
D)  Modular bills are used for assemblies that are not inventoried, unlike phantom bills. 
E)  Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried. E

Question 4

Which of the following is not a disadvantage of ERP systems?

Accepted Answer

A)  They involve an ongoing process for implementation, which may never be completed 
B)  They have software that is off-the-shelf coding. 
C)  Expertise in ERP is limited, with staffing an ongoing problem. 
D)  They are so complex that many companies cannot adjust to them. 
E)  Implementation may require major changes in the company and its processes. 
A)  They involve an ongoing process for implementation, which may never be completed 
B)  They have software that is off-the-shelf coding. 
C)  Expertise in ERP is limited, with staffing an ongoing problem. 
D)  They are so complex that many companies cannot adjust to them. 
E)  Implementation may require major changes in the company and its processes.

Question 5

Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy.

Accepted Answer

A) True 
 B)False

Question 6

Compare MRP in services to MRP in manufacturing. Utilize a simple example in your comparison.

Accepted Answer

Services can exhibit dependent demand, j

Question 7

If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent" component of G.

Accepted Answer

A) True 
 B)False

Question 8

Dependent demand and independent demand items differ in that

Accepted Answer

A)  for any product, all components are dependent-demand items 
B)  the need for independent-demand items is forecast 
C)  the need for dependent-demand items is calculated 
D)  All of the above are true. 
E)  None of the above is true. 
A)  for any product, all components are dependent-demand items 
B)  the need for independent-demand items is forecast 
C)  the need for dependent-demand items is calculated 
D)  All of the above are true. 
E)  None of the above is true.

Question 9

The master production schedule is a forecast of demand for families of products.

Accepted Answer

A) True 
 B)False

Question 10

Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is __________ weeks.

Accepted Answer

A)  6 
B)  7 
C)  8 
D)  10 
E)  cannot be determined 
A)  6 
B)  7 
C)  8 
D)  10 
E)  cannot be determined

Question 11

The __________ is used to correct an erroneous dimension, quantity, or other specification in a bill of material.

Accepted Answer

engineerin

Question 12

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

Accepted Answer

The information necessary for an operati

Question 13

What are time fences? Why are they used?

Accepted Answer

Time fences allow a segment of

Question 14

In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket

Accepted Answer

A)  signals the need to purchase that end item in that period 
B)  implies that value was scheduled by the MPS 
C)  signals the need for a negative planned order receipt in that period 
D)  is impossible 
E)  All of the above are true. 
A)  signals the need to purchase that end item in that period 
B)  implies that value was scheduled by the MPS 
C)  signals the need for a negative planned order receipt in that period 
D)  is impossible 
E)  All of the above are true.

Question 15

A working MRP system allows a firm to react to even minor changes in production requirements. Discuss both the advantages and disadvantages of having such ability.

Accepted Answer

The advantages are it allows the firm to

Question 16

What are the advantages of enterprise resource planning (ERP)?

Accepted Answer

ERP provides integration of the supply c

Question 17

A paint company mixes ten different base colors into 3,000 different color options. If the MPS is organized around the ten different base colors their bills of material are classified as

Accepted Answer

A)  Phantom 
B)  Planning 
C)  Modular 
D)  Low-Level 
E)  A and B 
A)  Phantom 
B)  Planning 
C)  Modular 
D)  Low-Level 
E)  A and B

Question 18

Consider the following requirements for a certain product.
   Beginning inventory = 500 units
Setup cost = $500 per setup
Lead time = 1 week
Holding cost = $3 per unit per week
a. Develop the lot-for-lot MRP table.
b. Calculate the total relevant costs.

Accepted Answer

There are three setups at $500 each, tot

Question 19

The phrase "demand related to the demand for other products" describes

Accepted Answer

A)  a dependent variable 
B)  dependent demand 
C)  recursive demand 
D)  regression analysis 
E)  independent demand 
A)  a dependent variable 
B)  dependent demand 
C)  recursive demand 
D)  regression analysis 
E)  independent demand

Question 20

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 2 of Part B. There are 30 units of B available.
a. Calculate the net requirements for A.
b. Calculate the gross requirements for B.
c. Calculate the net requirements for B.

Accepted Answer

(a) 110 - 60 = 50; (

Exam 14: Material Requirements Planning Mrp and Erp

Given the following bill of material If the demand for product A is 50 units, what will be the gross requirement for component E?

Which of the following statements best compares modular bills and phantom bills?

Which of the following is not a disadvantage of ERP systems?

Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy.

Compare MRP in services to MRP in manufacturing. Utilize a simple example in your comparison.

If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent" component of G.

Dependent demand and independent demand items differ in that

The master production schedule is a forecast of demand for families of products.

Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is __________ weeks.

The __________ is used to correct an erroneous dimension, quantity, or other specification in a bill of material.

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

What are time fences? Why are they used?

In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket

A working MRP system allows a firm to react to even minor changes in production requirements. Discuss both the advantages and disadvantages of having such ability.

What are the advantages of enterprise resource planning (ERP)?

A paint company mixes ten different base colors into 3,000 different color options. If the MPS is organized around the ten different base colors their bills of material are classified as

Consider the following requirements for a certain product. Beginning inventory = 500 units Setup cost = $500 per setup Lead time = 1 week Holding cost = $3 per unit per week a. Develop the lot-for-lot MRP table. b. Calculate the total relevant costs.

The phrase "demand related to the demand for other products" describes

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 2 of Part B. There are 30 units of B available. a. Calculate the net requirements for A. b. Calculate the gross requirements for B. c. Calculate the net requirements for B.

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