Question 1

The multiplication process used by MRP to determine lower-level requirements is called:

Accepted Answer

A)  time-phasing. 
B)  pegging. 
C)  netting. 
D)  projecting. 
E)  exploding. 
A)  time-phasing. 
B)  pegging. 
C)  netting. 
D)  projecting. 
E)  exploding.

Question 2

ERP is now about enterprise applications:

Accepted Answer

A)  deployment. 
B)  development. 
C)  interfaces. 
D)  integration. 
E)  networking. 
A)  deployment. 
B)  development. 
C)  interfaces. 
D)  integration. 
E)  networking.

Question 3

A net-change MRP system is one that is updated periodically but not less frequently than once a week.

Accepted Answer

A) True 
 B)False

Question 4

Comparing known and expected capacity requirements with projected capacity availability is the job of:

Accepted Answer

A)  planned releases. 
B)  load reports. 
C)  lot sizing. 
D)  work loading. 
E)  time fencing. 
A)  planned releases. 
B)  load reports. 
C)  lot sizing. 
D)  work loading. 
E)  time fencing.

Question 5

Net requirements equal gross requirements minus safety stock.

Accepted Answer

A) True 
 B)False

Question 6

Scheduled receipts differ from planned receipts in that scheduled receipts:

Accepted Answer

A)  have longer lead times. 
B)  involve orders that have not yet been placed. 
C)  have not been pegged with actual customer orders. 
D)  involve orders that have already been placeD. 
E)  involve exceptions to order quantity policies. 
A)  have longer lead times. 
B)  involve orders that have not yet been placed. 
C)  have not been pegged with actual customer orders. 
D)  involve orders that have already been placeD. 
E)  involve exceptions to order quantity policies.

Question 7

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: $$\begin{array} { l c c } 
\text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \
\text { Deluxe Easter Basket } & 1 \text { week } & 10 \
\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \
\text { Carved Chocolate Eggs ( } 4 \text { per) } & 1 \text { week } & 50
\end{array}$$
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.
When should an order for carved chocolate eggs be released?

Accepted Answer

A)  at the start of week 2 
B)  at the start of week 3 
C)  at the start of week 4 
D)  at the start of week 5 
E)  at the start of week 6 
A)  at the start of week 2 
B)  at the start of week 3 
C)  at the start of week 4 
D)  at the start of week 5 
E)  at the start of week 6

Question 8

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.

Accepted Answer

A)  pegging 
B)  planned order release 
C)  net-change 
D)  regenerative 
E)  exception report 
A)  pegging 
B)  planned order release 
C)  net-change 
D)  regenerative 
E)  exception report

Question 9

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

Accepted Answer

A) True 
 B)False

Question 10

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: $$\begin{array} { l c c } 
\text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \
\text { Deluxe Easter Basket } & 1 \text { week } & 10 \
\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \
\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50
\end{array}$$
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.
What is the net requirement for dark chocolate truffles to fill this order?

Accepted Answer

A)  100 
B)  140 
C)  150 
D)  180 
E)  200 
A)  100 
B)  140 
C)  150 
D)  180 
E)  200

Question 11

One of the primary output reports of MRP concerns changes to planned orders.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is absolutely necessary for successful implementation and operation of MRP?
(I) accurate inventory records
(II) master schedules
(III) accurate holding and backordering costs
(IV) accurate bills of materials

Accepted Answer

A)  I, II, and IV only 
B)  I, III, and IV only 
C)  I, II, and III only 
D)  I and II only 
E)  I, II, III, and IV 
A)  I, II, and IV only 
B)  I, III, and IV only 
C)  I, II, and III only 
D)  I and II only 
E)  I, II, III, and IV

Question 13

Lumpy demand for components results primarily from the periodic scheduling of batch production.

Accepted Answer

A) True 
 B)False

Question 14

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper-level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is not an input in an MRP system?

Accepted Answer

A)  planned-order schedules 
B)  bill of materials 
C)  master production schedule 
D)  inventory records 
E)  All are inputs. 
A)  planned-order schedules 
B)  bill of materials 
C)  master production schedule 
D)  inventory records 
E)  All are inputs.

Question 16

Which statement concerning MRP II is false?

Accepted Answer

A)  It has material requirements planning at it heart. 
B)  It can handle complex planning and scheduling quickly. 
C)  It involves other functional areas in the production planning process. 
D)  It involves capacity planning. 
E)  It connects all parts of a firm and key portions of its supply chain to a single database for information sharing. 
A)  It has material requirements planning at it heart. 
B)  It can handle complex planning and scheduling quickly. 
C)  It involves other functional areas in the production planning process. 
D)  It involves capacity planning. 
E)  It connects all parts of a firm and key portions of its supply chain to a single database for information sharing.

Question 17

Which of the following is a direct input into capacity requirements planning?
(I) the master production schedule
(II) routing information
(III) current shop loads
(IV) planned-order releases

Accepted Answer

A)  II, III, and IV only 
B)  I, II, and IV only 
C)  I, III, and IV only 
D)  I and II only 
E)  I, II, III, and IV 
A)  II, III, and IV only 
B)  I, II, and IV only 
C)  I, III, and IV only 
D)  I and II only 
E)  I, II, III, and IV

Question 18

Which of the following most closely describes dependent demand?

Accepted Answer

A)  demand generated by suppliers 
B)  estimates of demand using regression analysis of independent variables 
C)  derived demand 
D)  demands placed on suppliers by their customers 
E)  net material requirements 
A)  demand generated by suppliers 
B)  estimates of demand using regression analysis of independent variables 
C)  derived demand 
D)  demands placed on suppliers by their customers 
E)  net material requirements

Question 19

Which one of the following most closely describes net requirements for the current period?

Accepted Answer

A)  gross requirements for current period - projected on-hand inventory for current period 
B)  gross requirements for current period - planned receipts for previous period 
C)  gross requirements for current period - planned order releases for previous period + projected on-hand inventory for previous period 
D)  gross requirements for current period - planned order releases for previous period 
E)  gross requirements for current period - projected on-hand inventory for current period + planned order releases for current period 
A)  gross requirements for current period - projected on-hand inventory for current period 
B)  gross requirements for current period - planned receipts for previous period 
C)  gross requirements for current period - planned order releases for previous period + projected on-hand inventory for previous period 
D)  gross requirements for current period - planned order releases for previous period 
E)  gross requirements for current period - projected on-hand inventory for current period + planned order releases for current period

Question 20

_______ is choosing how many to order or make each time an order is planned.

Accepted Answer

A)  Quantity determination 
B)  Package sizing 
C)  Lot sizing 
D)  Grouping 
E)  Aggregation 
A)  Quantity determination 
B)  Package sizing 
C)  Lot sizing 
D)  Grouping 
E)  Aggregation

Exam 17: MRP and ERP

The multiplication process used by MRP to determine lower-level requirements is called:

ERP is now about enterprise applications:

A net-change MRP system is one that is updated periodically but not less frequently than once a week.

Comparing known and expected capacity requirements with projected capacity availability is the job of:

Net requirements equal gross requirements minus safety stock.

Scheduled receipts differ from planned receipts in that scheduled receipts:

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

One of the primary output reports of MRP concerns changes to planned orders.

Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory records (II) master schedules (III) accurate holding and backordering costs (IV) accurate bills of materials

Lumpy demand for components results primarily from the periodic scheduling of batch production.

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper-level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Which one of the following is not an input in an MRP system?

Which statement concerning MRP II is false?

Which of the following is a direct input into capacity requirements planning? (I) the master production schedule (II) routing information (III) current shop loads (IV) planned-order releases

Which of the following most closely describes dependent demand?

Which one of the following most closely describes net requirements for the current period?

_______ is choosing how many to order or make each time an order is planned.

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