Question 1

Discussed why lots sizing is important in MRP.

Accepted Answer

Lot sizing is important primarily as it

Question 2

Dependent demand occurs because the quantity required is a function of the demand for other items held in inventory.

Accepted Answer

A) True 
 B)False

Question 3

Table 13.3
Consider the following MPS, BOM, and inventory data. You will need a blank MRP record to answer the question(s).
Master Production Schedule: the following table shows the MPS start quantities.
Week
$\begin{array} { | c | c | c | c | c | c | c | } 
\hline \text { Week } & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { A } & 50 & & 80 & & & 100 \
\text { B } & & & 60 & & 100 \
\hline
\end{array}$
Bill of Material
-End item A uses 1 each of component C and 1 each of subassembly D.
-Subassembly D uses 2 each of component E and 2 each of component F.
-End item B uses 1 each of component C and 2 each of component F.
Selected Inventory Data
Item
$\begin{array} { | l | c | c | c | c | } 
\hline \text { Data Category } & \mathrm { C } & \mathrm { D } & \mathrm { E } & \mathrm { F } \
\hline \text { Lot-sizing rule } & \mathrm { L } 4 \mathrm {~L} & \mathrm {~L} 4 \mathrm {~L} & \text { FOQ } = 250 & \text { POQ } ( \mathrm { P } = 2 ) \
\text { Lead time (wks) } & 3 & 1 & 3 & 1 \
\text { Beginning (on-hand) inventory } & 50 & 80 & 90 & 30 \
\text { Scheduled receipts } & 80 ( \mathrm { wk } 1 ) & \text { None } & 250 ( \mathrm { wk } 3 ) & 205 ( \mathrm { wk } 1 ) \
\hline
\end{array}$
-Use the information in Table 13.3. Which one of the following statements on item C is TRUE?

Accepted Answer

A)  There will be more than two action notices. 
B)  There will be exactly two action notices, to release a new order and delay the scheduled receipt. 
C)  There will be exactly one action notice, to release a new order. 
D)  There will be no action notices for item C. 
A)  There will be more than two action notices. 
B)  There will be exactly two action notices, to release a new order and delay the scheduled receipt. 
C)  There will be exactly one action notice, to release a new order. 
D)  There will be no action notices for item C.

Question 4

In a dependent demand environment, explained why MRP does a better job of estimating the need to replenish inventory items than does a fixed order quantity system.

Accepted Answer

MRP works better for a dependent demand

Question 5

_________ are orders that have been placed, but not yet completed.

Accepted Answer

The answer of  _________ are orders that have been...

Question 6

_________ systems are large, integrated information systems that support many enterprise processes and data storage needs.

Accepted Answer

Enterprise

Question 7

_________ is an algorithm designed to schedule a group of orders appropriately across an entire shop.

Accepted Answer

Finite cap

Question 8

Table 13.8
Sunshine Manufacture produces three products, X, Y, and Z. The production of these end items is controlled by an MRP system. Each end item X is assembled with two components of A and one component of B. Each end item of Y is assembled with two components of C and one component of A, each component of C is manufactured from one unit of B. End item Z is assembled from one unit of D and one unit of C, D is manufactured from one unit of A, and C is manufactured from one unit of B.
-Use the information in Table 13.8. If level- by- level processing is used, what is a correct order for processing components A, B, C, and D?

Accepted Answer

A)  A B C D 
B)  D A B C 
C)  C B A D 
D)  C D A B 
A)  A B C D 
B)  D A B C 
C)  C B A D 
D)  C D A B

Question 9

_________ demand occurs because the quantity required is a function of the demand for the other items held in inventory.

Accepted Answer

The answer of  _________ demand occurs because the quantity...

Question 10

Which best defines the gross requirements for a component item?

Accepted Answer

A)  the forecasted customer demand for the component 
B)  the total demand for the component derived from all immediate parents 
C)  the sum of gross requirements for all parents of the component 
D)  the amount of safety stock needed to buffer against uncertainties 
A)  the forecasted customer demand for the component 
B)  the total demand for the component derived from all immediate parents 
C)  the sum of gross requirements for all parents of the component 
D)  the amount of safety stock needed to buffer against uncertainties

Question 11

Table 13.7.
 
-Use the information from Table 13.7. If a POQ lot- sizing rule is used, where P = 3, how many planned order releases are there for item XYZ?

Accepted Answer

A)  0 or 1 
B)  2 or 3 
C)  4 or 5 
D)  more than 5 
A)  0 or 1 
B)  2 or 3 
C)  4 or 5 
D)  more than 5

Question 12

The _________ is a record of all components of an item, the parent- component relationships, and usage quantities derived from engineering and process design.

Accepted Answer

The answer of The _________ is a record of all...

Question 13

Environmental management and MRP do not work well together.

Accepted Answer

A) True 
 B)False

Question 14

The lot- sizing rule that generates the highest level of average inventory because it creates inventory remnants is

Accepted Answer

A)  periodic order quantity (POQ). 
B)  lot- for- lot (L4L). 
C)  fixed order quantity (FOQ). 
D)  usage quantity. 
A)  periodic order quantity (POQ). 
B)  lot- for- lot (L4L). 
C)  fixed order quantity (FOQ). 
D)  usage quantity.

Question 15

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Accepted Answer

A) True 
 B)False

Question 16

The Bill of Resources is a list of

Accepted Answer

A)  staff time needed to manufacture an item. 
B)  all resources needed to provide a service. 
C)  staff time needed to provide a service. 
D)  raw materials needed to provide a service. 
A)  staff time needed to manufacture an item. 
B)  all resources needed to provide a service. 
C)  staff time needed to provide a service. 
D)  raw materials needed to provide a service.

Question 17

Management wishes to use a FOQ lot- sizing rule for an item based on the economic order quantity. If the annual demand is 1200 units, the holding cost is $10/unit/year, and the setup cost is $50/lot, which one of the following fixed order quantities is most appropriate?

Accepted Answer

A)  90 units 
B)  110 units 
C)  130 units 
D)  150 units 
A)  90 units 
B)  110 units 
C)  130 units 
D)  150 units

Question 18

Lumpy dependent demand can result from continuous independent demand.

Accepted Answer

A) True 
 B)False

Question 19

An action bucket is the first week's entry of the planned order release row.

Accepted Answer

A) True 
 B)False

Question 20

Complete the following MRP schedule:

Accepted Answer

The answer of Complete the following MRP schedule: 
 ...

Discussed why lots sizing is important in MRP.

Dependent demand occurs because the quantity required is a function of the demand for other items held in inventory.

In a dependent demand environment, explained why MRP does a better job of estimating the need to replenish inventory items than does a fixed order quantity system.

_________ are orders that have been placed, but not yet completed.

_________ systems are large, integrated information systems that support many enterprise processes and data storage needs.

_________ is an algorithm designed to schedule a group of orders appropriately across an entire shop.

_________ demand occurs because the quantity required is a function of the demand for the other items held in inventory.

Which best defines the gross requirements for a component item?

Table 13.7. -Use the information from Table 13.7. If a POQ lot- sizing rule is used, where P = 3, how many planned order releases are there for item XYZ?

The _________ is a record of all components of an item, the parent- component relationships, and usage quantities derived from engineering and process design.

Environmental management and MRP do not work well together.

The lot- sizing rule that generates the highest level of average inventory because it creates inventory remnants is

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

The Bill of Resources is a list of

Management wishes to use a FOQ lot- sizing rule for an item based on the economic order quantity. If the annual demand is 1200 units, the holding cost is $10/unit/year, and the setup cost is $50/lot, which one of the following fixed order quantities is most appropriate?

Lumpy dependent demand can result from continuous independent demand.

An action bucket is the first week's entry of the planned order release row.

Complete the following MRP schedule:

Creating Customer Value

Supply Chain Management

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Capacity

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Filters

Exam 13: Resource Planning

Discussed why lots sizing is important in MRP.

Dependent demand occurs because the quantity required is a function of the demand for other items held in inventory.

In a dependent demand environment, explained why MRP does a better job of estimating the need to replenish inventory items than does a fixed order quantity system.

_________ are orders that have been placed, but not yet completed.

_________ systems are large, integrated information systems that support many enterprise processes and data storage needs.

_________ is an algorithm designed to schedule a group of orders appropriately across an entire shop.

_________ demand occurs because the quantity required is a function of the demand for the other items held in inventory.

Which best defines the gross requirements for a component item?

Table 13.7. -Use the information from Table 13.7. If a POQ lot- sizing rule is used, where P = 3, how many planned order releases are there for item XYZ?

The _________ is a record of all components of an item, the parent- component relationships, and usage quantities derived from engineering and process design.

Environmental management and MRP do not work well together.

The lot- sizing rule that generates the highest level of average inventory because it creates inventory remnants is

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

The Bill of Resources is a list of

Management wishes to use a FOQ lot- sizing rule for an item based on the economic order quantity. If the annual demand is 1200 units, the holding cost is $10/unit/year, and the setup cost is $50/lot, which one of the following fixed order quantities is most appropriate?

Lumpy dependent demand can result from continuous independent demand.

An action bucket is the first week's entry of the planned order release row.

Complete the following MRP schedule:

Creating Customer Value

Supply Chain Management

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Capacity

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Filters