Question 1

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  True

Question 2

Product A is made from 2 Bs and 1 C. Lead times for A, B, and C are 2, 3, and 2 weeks respectively. Currently there are 2 Bs and a 5 Cs on hand, with 5 of each scheduled to arrive at the end of week 1. If 20 As are needed during week 4, can the order be completed (it is the start of week 0 currently)?

Accepted Answer

To produce 20 As requires 40 Bs and 20 Cs at the start of week 2. Since the lead time for B is greater than 2 weeks the order cannot be completed on time.

Question 3

Time fences divide that segment of the MPS that can be revised from that section that is "frozen."

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is false concerning enterprise resource planning (ERP)?

Accepted Answer

A)  It attempts to automate and integrate the majority of business processes. 
B)  It shares common data and practices across the enterprise. 
C)  It is inexpensive to implement any type of off-the-shelf coding. 
D)  It provides and accesses information in a real-time environment. 
E)  It requires an ongoing implementation process. 
A)  It attempts to automate and integrate the majority of business processes. 
B)  It shares common data and practices across the enterprise. 
C)  It is inexpensive to implement any type of off-the-shelf coding. 
D)  It provides and accesses information in a real-time environment. 
E)  It requires an ongoing implementation process.

Question 5

A product has the following gross requirements. Which is cheaper, lot-for-lot or EOQ lot-sizing?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Week } & 1 & 2 & 3 & 4 \
\hline\text { Requirements } & 30 & 30 & 40 & 20 \
\hline
\end{array}$$ Other data for this scenario include: setup cost = $300, inventory holding cost $9 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 $300 × 4 = $1,200

Question 6

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 7

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 8

Finite capacity scheduling, unlike MRP, recognizes the capacity limitations of departments and machines when building schedules.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The aggregate plan gets input or feedback from which of the following areas?

Accepted Answer

A)  engineering 
B)  finance, marketing, and human resources 
C)  the master production schedule 
D)  procurement, production, and general management 
E)  all of the above 
A)  engineering 
B)  finance, marketing, and human resources 
C)  the master production schedule 
D)  procurement, production, and general management 
E)  all of the above

Question 11

If a load report (resource requirements profile) shows a work centre scheduled beyond capacity

Accepted Answer

A)  the company must add capacity by enlarging the facility. 
B)  the company must add capacity by such tactics as overtime and subcontracting. 
C)  the work centre's load may be smoothed by such tactics as operations splitting or lot splitting. 
D)  the aggregate plan must be revised. 
E)  the Wagner-Whitin algorithm should be used to rebalance the load. 
A)  the company must add capacity by enlarging the facility. 
B)  the company must add capacity by such tactics as overtime and subcontracting. 
C)  the work centre's load may be smoothed by such tactics as operations splitting or lot splitting. 
D)  the aggregate plan must be revised. 
E)  the Wagner-Whitin algorithm should be used to rebalance the load.

Question 12

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 13

What is the "supermarket" as it is used in MRP? How does it alter the responsibility for dealing with lead-time offsets?

Accepted Answer

The supermarket concept applies when par

Question 14

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.

Question 15

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.
 $$\begin{array} {| l | l | l | l | l | l | l | l | } 
\hline \text { Month } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \
\hline \text { Requirement } & 100 & 150 & 200 & 150 & 100 & 150 & 250 \
\hline
\end{array}$$

Accepted Answer

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

Question 16

A product has the following gross requirements. Which is cheaper, lot-for-lot or EOQ lot-sizing?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Week } & 1 & 2 & 3 & 4 \
\hline\text { Requirements } & 30 & 30 & 40 & 20 \
\hline
\end{array}$$ Other data for this scenario include: setup cost = $300, inventory holding cost $9 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 $300 × 4 = $1,200

Question 17

The following table is an example of a(n) $$\begin{array} { | l | l | l | l | l | l | } 
\hline & \text { Week 1 } & \text { Week 2 } & \text { Week 3 } & \text { Week 4 } & \text { Week 5 } \
\hline \text { Clothes Washer } & & 200 & & 100 & \
\hline \text { Clothes Dryer } & 300 & 100 & 100 & & 100 \
\hline \text { Upright Freezer } & & & 200 & 500 & \
\hline
\end{array}$$

Accepted Answer

A)  aggregate plan. 
B)  load report. 
C)  master production schedule. 
D)  capacity plan. 
E)  inventory record. 
A)  aggregate plan. 
B)  load report. 
C)  master production schedule. 
D)  capacity plan. 
E)  inventory record.

Question 18

Which of the following is a step towards integrating JIT and MRP according to the text?

Accepted Answer

A)  smaller buckets 
B)  increase quality 
C)  scrap MRP, it does not work with JIT 
D)  migrate from MRP to ERP 
E)  time fence linking 
A)  smaller buckets 
B)  increase quality 
C)  scrap MRP, it does not work with JIT 
D)  migrate from MRP to ERP 
E)  time fence linking

Question 19

Consider the following bill of material. Fifty units of Product A are needed. Assuming no on-hand inventory, explode the bill of material.

Accepted Answer

Item A: 50 units; Item B: 50 × 1 = 50 un

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 14: Material Requirements Planning Mrp and Erp

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

Time fences divide that segment of the MPS that can be revised from that section that is "frozen."

Which of the following is false concerning enterprise resource planning (ERP)?

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.

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

Finite capacity scheduling, unlike MRP, recognizes the capacity limitations of departments and machines when building schedules.

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

The aggregate plan gets input or feedback from which of the following areas?

If a load report (resource requirements profile) shows a work centre scheduled beyond capacity

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

What is the "supermarket" as it is used in MRP? How does it alter the responsibility for dealing with lead-time offsets?

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

The following table is an example of a(n) Week 1 Week 2 Week 3 Week 4 Week 5 Clothes Washer 200 100 Clothes Dryer 300 100 100 100 Upright Freezer 200 500

Which of the following is a step towards integrating JIT and MRP according to the text?

Consider the following bill of material. Fifty units of Product A are needed. Assuming no on-hand inventory, explode the bill of material.

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

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