Question 1

Describe how MRP II differs from MRP.

Accepted Answer

MRP II is MRP in which invento

Question 2

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

Accepted Answer

A)  FCS recognizes the finite nature of capacity while MRP does not. 
B)  FCS works in services while MRP does not. 
C)  MRP requires time buckets while FCS does not. 
D)  FCS is an input into traditional MRP systems. 
E)  FCS uses the Wagner-Whitin algorithm while MRP uses lot-for-lot and EOQ. 
A)  FCS recognizes the finite nature of capacity while MRP does not. 
B)  FCS works in services while MRP does not. 
C)  MRP requires time buckets while FCS does not. 
D)  FCS is an input into traditional MRP systems. 
E)  FCS uses the Wagner-Whitin algorithm while MRP uses lot-for-lot and EOQ.

Question 3

Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and bolts.

Accepted Answer

A) True 
 B)False

Question 4

Distortion in MRP systems can be minimized when safety stock is held at the

Accepted Answer

A)  purchased component or raw material level 
B)  work-in-process level 
C)  finished goods level 
D)  A and B 
E)  A and C 
A)  purchased component or raw material level 
B)  work-in-process level 
C)  finished goods level 
D)  A and B 
E)  A and C

Question 5

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

Accepted Answer

A) True 
 B)False

Question 6

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

Accepted Answer

A)  .005 
B)  60 
C)  72 
D)  100 
E)  200 
A)  .005 
B)  60 
C)  72 
D)  100 
E)  200

Question 7

Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $.75 per month and each setup costs $150. Calculate the order quantity by use of the part-period algorithm. Lead time is 2 months.

Accepted Answer

EPP = @#IMG-DLM& = @#IMG-DLM& = 200 units
In Period 1, an or

Question 8

A bill of material lists the

Accepted Answer

A)  times needed to perform all phases of production 
B)  production schedules for all products 
C)  components, ingredients, and materials required to produce an item 
D)  operations required to produce an item 
E)  components, ingredients, materials, and assembly operations required to produce an item 
A)  times needed to perform all phases of production 
B)  production schedules for all products 
C)  components, ingredients, and materials required to produce an item 
D)  operations required to produce an item 
E)  components, ingredients, materials, and assembly operations required to produce an item

Question 9

Construct an indented bill of material for a common 3-ring view binder (the kind that lets you slip your own cover sheet into the front panel and spine). Assume the rings to be 1 inch diameter. Don't worry about other dimensions?pay attention to accounting for all of the parts.

Accepted Answer

Not all such binders are identical, and

Question 10

A(n) __________ provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times.

Accepted Answer

closed-loo

Question 11

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 4 of Part B. There are 20 units of B available. The net requirements for B are

Accepted Answer

A)  20 
B)  120 
C)  180 
D)  240 
E)  440 
A)  20 
B)  120 
C)  180 
D)  240 
E)  440

Question 12

__________ refers to the time units in a material requirements planning (MRP) system.

Accepted Answer

The answer of __________ refers to the time units in...

Question 13

Which of the following best describes a gross material requirements plan?

Accepted Answer

A)  a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started 
B)  an intermediate range plan for the scheduling of families of products 
C)  a chart illustrating whether capacity has been exceeded 
D)  a table that corrects scheduled quantities for inventory on hand 
E)  a schedule showing which products are to be manufactured and in what quantities 
A)  a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started 
B)  an intermediate range plan for the scheduling of families of products 
C)  a chart illustrating whether capacity has been exceeded 
D)  a table that corrects scheduled quantities for inventory on hand 
E)  a schedule showing which products are to be manufactured and in what quantities

Question 14

__________, unlike MRP, recognizes that departments and machines have limitations on their capacity that must be observed if the schedule is to be realistic.

Accepted Answer

Finite cap

Question 15

A bill of material must be updated with the corrected dimensions of a part. The document that details this change is a(n)

Accepted Answer

A)  modular bill 
B)  engineering change notice 
C)  resource requirements profile 
D)  lead time-offset product structure document 
E)  planning bill 
A)  modular bill 
B)  engineering change notice 
C)  resource requirements profile 
D)  lead time-offset product structure document 
E)  planning bill

Question 16

By convention, the top level in a bill of material is

Accepted Answer

A)  level 0 
B)  level 1 
C)  level T 
D)  level 10 
E)  level 100 
A)  level 0 
B)  level 1 
C)  level T 
D)  level 10 
E)  level 100

Question 17

A material requirements plan contains information with regard to all of the following except

Accepted Answer

A)  quantities and required delivery dates of all subassemblies 
B)  quantities and required delivery dates of final products 
C)  the capacity needed to provide the projected output rate 
D)  inventory on hand for each final product 
E)  inventory on hand for each subassembly 
A)  quantities and required delivery dates of all subassemblies 
B)  quantities and required delivery dates of final products 
C)  the capacity needed to provide the projected output rate 
D)  inventory on hand for each final product 
E)  inventory on hand for each subassembly

Question 18

A product has the following gross requirements. Which is cheaper, lot-for-lot or EOQ lot-sizing?
   Other data for this scenario include: setup cost = $1000, inventory holding cost $1 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 $1000 x 4 = $4,000

Question 19

In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ.

Accepted Answer

A) True 
 B)False

Question 20

MRP II is accurately described as

Accepted Answer

A)  MRP software designed for services 
B)  MRP with a new set of computer programs that execute on microcomputers 
C)  MRP augmented by other resource variables 
D)  an enhancement of MRP that plans for all levels of the supply chain 
E)  a new generation of MRP software that extends MRP to planning and scheduling functions 
A)  MRP software designed for services 
B)  MRP with a new set of computer programs that execute on microcomputers 
C)  MRP augmented by other resource variables 
D)  an enhancement of MRP that plans for all levels of the supply chain 
E)  a new generation of MRP software that extends MRP to planning and scheduling functions

Exam 14: Material Requirements Planning Mrp and Erp

Describe how MRP II differs from MRP.

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and bolts.

Distortion in MRP systems can be minimized when safety stock is held at the

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $.75 per month and each setup costs $150. Calculate the order quantity by use of the part-period algorithm. Lead time is 2 months.

A bill of material lists the

Construct an indented bill of material for a common 3-ring view binder (the kind that lets you slip your own cover sheet into the front panel and spine). Assume the rings to be 1 inch diameter. Don't worry about other dimensions?pay attention to accounting for all of the parts.

A(n) __________ provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times.

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 4 of Part B. There are 20 units of B available. The net requirements for B are

__________ refers to the time units in a material requirements planning (MRP) system.

Which of the following best describes a gross material requirements plan?

__________, unlike MRP, recognizes that departments and machines have limitations on their capacity that must be observed if the schedule is to be realistic.

A bill of material must be updated with the corrected dimensions of a part. The document that details this change is a(n)

By convention, the top level in a bill of material is

A material requirements plan contains information with regard to all of the following except

In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ.

MRP II is accurately described as

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