Question 1

Lot-for-lot ordering in MRP minimizes holding costs for parts that are carried over to other periods.

Accepted Answer

A) True 
 B)False  True

Question 2

MRP is used within MRP II systems.

Accepted Answer

A) True 
 B)False  True

Question 3

A computer-based information system designed to handle ordering and scheduling of dependent-demand items is used for:

Accepted Answer

A)  computer-aided manufacturing. 
B)  computer-integrated manufacturing. 
C)  economic order quantity. 
D)  material requirements planning. 
E)  economic run size. 
A)  computer-aided manufacturing. 
B)  computer-integrated manufacturing. 
C)  economic order quantity. 
D)  material requirements planning. 
E)  economic run size. D

Question 4

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

Accepted Answer

A) True 
 B)False

Question 5

The identification of parent items that have generated a given set of material requirements for an item is called:

Accepted Answer

A)  paternity. 
B)  pegging. 
C)  requirement I.D. 
D)  relationship tracking. 
E)  master scheduling. 
A)  paternity. 
B)  pegging. 
C)  requirement I.D. 
D)  relationship tracking. 
E)  master scheduling.

Question 6

The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of materials.

Accepted Answer

A) True 
 B)False

Question 7

A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

Accepted Answer

A) True 
 B)False

Question 8

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

Accepted Answer

A) True 
 B)False

Question 9

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

Accepted Answer

A) True 
 B)False

Question 10

An MRP system whose records are updated continuously is referred to as a(n):

Accepted Answer

A)  regenerative system. 
B)  batch-type system. 
C)  Plossl-Wright system. 
D)  net-change system. 
E)  gross-change system. 
A)  regenerative system. 
B)  batch-type system. 
C)  Plossl-Wright system. 
D)  net-change system. 
E)  gross-change system.

Question 11

The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

Accepted Answer

A) True 
 B)False

Question 12

MRP II did not replace the basic MRP.

Accepted Answer

A) True 
 B)False

Question 13

The inventory records contain information on the status of each item by time period.

Accepted Answer

A) True 
 B)False

Question 14

ERP implementation probably will not require:

Accepted Answer

A)  cross-functional teams. 
B)  just a few weeks to install. 
C)  intensive training. 
D)  high funding for both initial cost and maintenance. 
E)  upgrades after installation. 
A)  cross-functional teams. 
B)  just a few weeks to install. 
C)  intensive training. 
D)  high funding for both initial cost and maintenance. 
E)  upgrades after installation.

Question 15

MRP II is simply an improved version of MRP that processes more quickly and can plan for a larger number of end items.

Accepted Answer

A) True 
 B)False

Question 16

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?

Accepted Answer

A)  gross requirements 
B)  net requirements 
C)  economic order quantity 
D)  gross requirements minus scheduled receipts 
E)  net requirements minus projected on-hand inventory 
A)  gross requirements 
B)  net requirements 
C)  economic order quantity 
D)  gross requirements minus scheduled receipts 
E)  net requirements minus projected on-hand inventory

Question 17

Backflushing takes place:

Accepted Answer

A)  when inventory records need updating. 
B)  after some bills of material have been found to be inaccurate. 
C)  after production has been completeD. 
D)  when customer orders are being reconciled. 
E)  when previous periods' planned releases are converted to scheduled receipts. 
A)  when inventory records need updating. 
B)  after some bills of material have been found to be inaccurate. 
C)  after production has been completeD. 
D)  when customer orders are being reconciled. 
E)  when previous periods' planned releases are converted to scheduled receipts.

Question 18

Project management approaches can help in a conversion to an ERP system.

Accepted Answer

A) True 
 B)False

Question 19

An effort to expand the scope of material planning by involving other functional areas in the planning process has been:

Accepted Answer

A)  material requirements planning. 
B)  capacity requirements planning. 
C)  manufacturing resources planning. 
D)  just-in-time planning. 
E)  multifunctional relationships planning. 
A)  material requirements planning. 
B)  capacity requirements planning. 
C)  manufacturing resources planning. 
D)  just-in-time planning. 
E)  multifunctional relationships planning.

Question 20

Which of these products would be most likely to have dependent demand?

Accepted Answer

A)  refrigerators 
B)  automobile engines 
C)  televisions 
D)  brownies 
E)  Automobiles 
A)  refrigerators 
B)  automobile engines 
C)  televisions 
D)  brownies 
E)  Automobiles

Exam 17: MRP and ERP

Lot-for-lot ordering in MRP minimizes holding costs for parts that are carried over to other periods.

MRP is used within MRP II systems.

A computer-based information system designed to handle ordering and scheduling of dependent-demand items is used for:

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

The identification of parent items that have generated a given set of material requirements for an item is called:

The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of materials.

A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

An MRP system whose records are updated continuously is referred to as a(n):

The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

MRP II did not replace the basic MRP.

The inventory records contain information on the status of each item by time period.

ERP implementation probably will not require:

MRP II is simply an improved version of MRP that processes more quickly and can plan for a larger number of end items.

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?

Backflushing takes place:

Project management approaches can help in a conversion to an ERP system.

An effort to expand the scope of material planning by involving other functional areas in the planning process has been:

Which of these products would be most likely to have dependent demand?

Introduction to Operations Management

Competitiveness

Forecasting

Product and Service Design

RELIABILITY – Static

Strategic Capacity Planning for Products and Services

Decision Theory– Static

Process Selection and Facility Layout

Work Design and Measurement

learning curve– Static

Location Planning and Analysis

The Transportation Model– Static

Management of Quality

Quality Control

Acceptance Sampling– Static

Aggregate Planning and Master Scheduling

Inventory Management

JIT and Lean Operations

Maintenance– Static

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters