Exam 13: Resource Planning

The _________ rule is a special case of the periodic order quantity (POQ) rule where the lot size ordered covers the gross requirements of a single time period (e.g. one week).

Management wishes to use a POQ lot- sizing rule for an item that experiences an average demand of 30 units per week. If the desired average lot size is 120 units, what should P be?

Faster response to market changes and reduced inventory levels are both benefits of MRP.

Lot- for- lot (L4L) is a rule that maintains the same order quantity each time an order is issued.

_________ is an inventory control and scheduling technique that applies MRP principles to distribution inventories.

Explain the major difference for resource planning in service firms compared to manufacturers.

Which one of the following is a feature of MRP II, but not available in basic MRP systems?

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 Week 1 2 3 4 5 6 A 50 80 100 B 60 100 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 Data Category Lot-sizing rule 4 4 FOQ =250 POQ (=2) Lead time (wks) 3 1 3 1 Beginning (on-hand) inventory 50 80 90 30 Scheduled receipts 80(1) None 250(3) 205(1) -Use the information in Table 13.3. Which one of the following statements about item C is TRUE?

_________ ties the basic MRP system to the company's financial system.

Which one of the following systems is an input to the MRP system?

The _________ is a part of the material requirements plans that details how many end items will be produced within specified periods of time.

In an MRP system, a(n) _________ item has at least one parent and at least one component.

_________ is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

A bill of materials lists all components, ingredients, as and materials needed to produce one unit of an end item.

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

Complete the following MRP schedule:

The underlying logic for level- by- level processing in an MRP system is

Part commonality refers to a degree to which a component has more than one immediate parent.

Safety stock is more complex for independent demand items than for dependent demand items.

MRP explosion means estimating the total number of