Question 1

A dependent demand item is so called because its demand is dependent on customer preferences.

Accepted Answer

A) True 
 B)False  False

Question 2

A material requirements planning system generates output reports such as bill of material, inventory and purchase records, and lead times for each item.

Accepted Answer

A) True 
 B)False  False

Question 3

A(n) ________ can illustrate whether a work center has been scheduled beyond its capacity.

Accepted Answer

load report or resource requirements profile

Question 4

Consider the following requirements for an office chair product.   The company has a setup cost of $90, a holding cost per week of $5, beginning inventory of 300, and lead time of 2 weeks. What is the total inventory cost (setup plus holding) of using a lot-for-lot policy for this six-week inventory period?

Accepted Answer

A)  $1770 
B)  $1500 
C)  $270 
D)  $1680 
E)  $3270 
A)  $1770 
B)  $1500 
C)  $270 
D)  $1680 
E)  $3270

Question 5

What does the POQ interval equal?

Accepted Answer

A)  the number of periods of average demand covered by the safety stock 
B)  the same number of periods that are on the "not to be rescheduled" side of the time fence 
C)  EOQ / maximum gross requirement 
D)  the number of periods until the incoming projected on hand runs out 
E)  EOQ / average demand per period 
A)  the number of periods of average demand covered by the safety stock 
B)  the same number of periods that are on the "not to be rescheduled" side of the time fence 
C)  EOQ / maximum gross requirement 
D)  the number of periods until the incoming projected on hand runs out 
E)  EOQ / average demand per period

Question 6

Explain what is meant by "nervousness" of the MRP schedule. Provide an example. Name two tools that are particularly useful in reducing system nervousness in MRP systems.

Accepted Answer

Nervousness is the reaction to a large n

Question 7

Consider the following requirements for a certain product.
   Beginning inventory = 300 units
Setup cost = $300 per setup
Lead time = 1 week
Holding cost = $5 per unit per week
(a) Develop the lot-for-lot MRP table.
(b) Calculate the total relevant costs.

Accepted Answer

There are four setups at $300 each, tota

Question 8

What is MRP? Identify four benefits from its use.

Accepted Answer

MRP or material requirements planning is

Question 9

Demand for a given item is said to be dependent if:

Accepted Answer

A)  it originates from the external customer. 
B)  there is a deep bill of material. 
C)  the finished products are mostly services (rather than goods). 
D)  it is a component of a clearly identifiable parent. 
E)  the item has several children. 
A)  it originates from the external customer. 
B)  there is a deep bill of material. 
C)  the finished products are mostly services (rather than goods). 
D)  it is a component of a clearly identifiable parent. 
E)  the item has several children.

Question 10

Which of the following statements is TRUE regarding tactics for load smoothing?

Accepted Answer

A)  Overlapping means sending the lot to two different machines for the same operation. 
B)  Operations splitting results in longer throughput times. 
C)  Order splitting involves breaking up the order and running part of it earlier or later in the schedule. 
D)  Order splitting sends pieces to the second operations before the entire lot is completed on the first operation. 
E)  None of these is true. 
A)  Overlapping means sending the lot to two different machines for the same operation. 
B)  Operations splitting results in longer throughput times. 
C)  Order splitting involves breaking up the order and running part of it earlier or later in the schedule. 
D)  Order splitting sends pieces to the second operations before the entire lot is completed on the first operation. 
E)  None of these is true.

Question 11

You have seen several methods for lot sizing in MRP. Why is lot sizing important in MRP? Can too much concern be given to lot sizing?

Accepted Answer

Lot sizing is important because, at the

Question 12

Which of the following statements regarding Wheeled Coach is FALSE?

Accepted Answer

A)  Wheeled Coach has found competitive advantage through MRP. 
B)  Wheeled Coach builds ambulances in a repetitive process. 
C)  Wheeled Coach's MRP system allows the company to meet tight schedules but causes inventory to rise. 
D)  Wheeled Coach's MRP system maintains excellent record integrity. 
E)  Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP. 
A)  Wheeled Coach has found competitive advantage through MRP. 
B)  Wheeled Coach builds ambulances in a repetitive process. 
C)  Wheeled Coach's MRP system allows the company to meet tight schedules but causes inventory to rise. 
D)  Wheeled Coach's MRP system maintains excellent record integrity. 
E)  Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP.

Question 13

Which lot-sizing technique orders the quantity needed during a predetermined time between orders?

Accepted Answer

A)  economic order quantity 
B)  periodic order quantity 
C)  lot-for-lot 
D)  time fencing 
E)  part-period balancing 
A)  economic order quantity 
B)  periodic order quantity 
C)  lot-for-lot 
D)  time fencing 
E)  part-period balancing

Question 14

If 100 units of Q are needed and 10 are already in stock, then the gross requirement is 100 and the net requirement is 90.

Accepted Answer

A) True 
 B)False

Question 15

Describe the role of record accuracy in Wheeled Coach's successful use of MRP.

Accepted Answer

Wheeled Coach's record integrity is exce

Question 16

Consider the following product structure.   If the demand for product A is 40 units, and there are 10 units of B on hand and none of C, how many units of part D will be needed?

Accepted Answer

A)  3 
B)  40 
C)  70 
D)  90 
E)  100 
A)  3 
B)  40 
C)  70 
D)  90 
E)  100

Question 17

Consider the product structure shown below.
(a) Assuming 1 A is to be made, how many units of each of the other items would need to be made?
(b) If there are 20 of every item except A in on-hand inventory, how many As can be assembled?

Accepted Answer

(a) Item B: 1, Item C: 3, Item E: 3, Ite

Question 18

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 19

A very simple product (A) consists of a base (B) and a casting (C). The base consists of a plate (P) and three fasteners (F). There are currently 30 castings and 100 bases on hand. Final assembly takes one week. The casting has a lead time of three weeks. All other parts have one-week lead times. There are no scheduled receipts. All components use the lot-for-lot technique. The master schedule requires 80 units of product A in week 5 and 120 in week 8. Produce the MRP for the upcoming eight weeks. Produce a list of all planned order releases.

Accepted Answer

The answer of A very simple product (A) consists of...

Question 20

Consider the following product structure. Thirty units of Product A are needed. How many units of B, C, D, E, and F are needed?

Accepted Answer

Item B: 30(1) = 30 units; Item

Exam 13: Material Requirements Planning Mrp and Erp

A dependent demand item is so called because its demand is dependent on customer preferences.

A material requirements planning system generates output reports such as bill of material, inventory and purchase records, and lead times for each item.

A(n) ________ can illustrate whether a work center has been scheduled beyond its capacity.

What does the POQ interval equal?

Explain what is meant by "nervousness" of the MRP schedule. Provide an example. Name two tools that are particularly useful in reducing system nervousness in MRP systems.

Consider the following requirements for a certain product. Beginning inventory = 300 units Setup cost = $300 per setup Lead time = 1 week Holding cost = $5 per unit per week (a) Develop the lot-for-lot MRP table. (b) Calculate the total relevant costs.

What is MRP? Identify four benefits from its use.

Demand for a given item is said to be dependent if:

Which of the following statements is TRUE regarding tactics for load smoothing?

You have seen several methods for lot sizing in MRP. Why is lot sizing important in MRP? Can too much concern be given to lot sizing?

Which of the following statements regarding Wheeled Coach is FALSE?

Which lot-sizing technique orders the quantity needed during a predetermined time between orders?

If 100 units of Q are needed and 10 are already in stock, then the gross requirement is 100 and the net requirement is 90.

Describe the role of record accuracy in Wheeled Coach's successful use of MRP.

Consider the following product structure. If the demand for product A is 40 units, and there are 10 units of B on hand and none of C, how many units of part D will be needed?

Consider the product structure shown below. (a) Assuming 1 A is to be made, how many units of each of the other items would need to be made? (b) If there are 20 of every item except A in on-hand inventory, how many As can be assembled?

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

Consider the following product structure. Thirty units of Product A are needed. How many units of B, C, D, E, and F are needed?

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