Question 1

Which of the following most closely describes dependent demand?

Accepted Answer

A)  Demand generated by suppliers. 
B)  Sales forecasts. 
C)  Derived demand. 
D)  Demands placed on suppliers by their customers. 
E)  Net material requirements. 
A)  Demand generated by suppliers. 
B)  Sales forecasts. 
C)  Derived demand. 
D)  Demands placed on suppliers by their customers. 
E)  Net material requirements. C

Question 2

The hierarchical diagram that depicts the subassemblies and components that are needed to produce and/or assemble a product is called a(n):

Accepted Answer

A)  assembly time chart. 
B)  product structure tree. 
C)  MRP II. 
D)  pegging. 
E)  none of the choices. 
A)  assembly time chart. 
B)  product structure tree. 
C)  MRP II. 
D)  pegging. 
E)  none of the choices. B

Question 3

Budget overruns when implementing ERP systems are typically caused by:
I.high equipment costs.
II.high training costs.
III.high capital interest charges.
IV.costs of integrating and testing

Accepted Answer

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

Question 4

Independent demand tends to be ___________,while dependent demand tends to be __________.

Accepted Answer

A)  unstable; smooth 
B)  unstable; stable 
C)  stable; lumpy 
D)  smooth; sawtooth 
E)  sawtooth; smooth 
A)  unstable; smooth 
B)  unstable; stable 
C)  stable; lumpy 
D)  smooth; sawtooth 
E)  sawtooth; smooth

Question 5

Given the following information,construct a product tree diagram and develop a material requirements plan that will yield 400 units of product P at the start of week 7.
   Use the following form:

Accepted Answer

Product st

Question 6

One of the primary reports of MRP concerns changes to open orders.

Accepted Answer

A) True 
 B)False

Question 7

The gross requirements of a given part or component are determined from:

Accepted Answer

A)  net requirements + amount on-hand. 
B)  gross requirements of the immediate parent(s). 
C)  planned order releases of the end item. 
D)  net requirements of the end item. 
E)  planned order release of the immediate parent(s). 
A)  net requirements + amount on-hand. 
B)  gross requirements of the immediate parent(s). 
C)  planned order releases of the end item. 
D)  net requirements of the end item. 
E)  planned order release of the immediate parent(s).

Question 8

The master production schedule (MPS)states which end items are to be produced.

Accepted Answer

A) True 
 B)False

Question 9

What is the part-period method lot size for the order for the first period?

Accepted Answer

A)  120 
B)  200 
C)  280 
D)  350 
E)  450 
A)  120 
B)  200 
C)  280 
D)  350 
E)  450

Question 10

MRP usually involves inventory items that have independent demand.

Accepted Answer

A) True 
 B)False

Question 11

What is the economic part-period (EPP)for ordering this item?

Accepted Answer

A)  2 
B)  50 
C)  100 
D)  150 
E)  200 
A)  2 
B)  50 
C)  100 
D)  150 
E)  200

Question 12

The planned-order releases at one level of an MRP plan determine the gross requirements at the next level down in the bill of material.

Accepted Answer

A) True 
 B)False

Question 13

If 40 Ps are needed,and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies,how many Cs are needed?

Accepted Answer

A)  340 
B)  350 
C)  380 
D)  400 
E)  590 
A)  340 
B)  350 
C)  380 
D)  400 
E)  590

Question 14

ERP involves software that is used to manage and coordinate all the resources,information,and functions of an organization from a shared database.

Accepted Answer

A) True 
 B)False

Question 15

The development and application of MRP is primarily associated with two developments: (1)managers recognizing the need to differentiate between independent and dependent demand,and (2)___________.

Accepted Answer

A)  increased reliance on computers for record keeping 
B)  development of the EOQ model 
C)  the need for inventory control systems 
D)  the emergence of ERP systems 
E)  accounting systems 
A)  increased reliance on computers for record keeping 
B)  development of the EOQ model 
C)  the need for inventory control systems 
D)  the emergence of ERP systems 
E)  accounting systems

Question 16

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Accepted Answer

A)  Pegging 
B)  Safety stock 
C)  Increased order sizes 
D)  Safety time 
E)  Low-level coding 
A)  Pegging 
B)  Safety stock 
C)  Increased order sizes 
D)  Safety time 
E)  Low-level coding

Question 17

The following is a list of components required to produce one unit of end item P:
P: 2 A's,3 B's,3 C's
A: 5 M's,2 R's
B:1 D,3 N's.
C: 1 T,4 N's
M: 1 N
Determine the number of N's that will be needed to make 60 P's in each of these cases:
(i)There are currently 10 P's on hand.
(ii)On-hand inventory consists of 15 P's,10A's,20 B's,10 C's,100 N's,300 T's,and 200 M's.

Accepted Answer

The produc

Question 18

The bill of material contains information on lead times.

Accepted Answer

A) True 
 B)False

Question 19

The MRP requires a list of the individual parts that will be converted to finished goods.

Accepted Answer

A) True 
 B)False

Question 20

Dependent demand is derived demand.

Accepted Answer

A) True 
 B)False

Exam 14: Material Requirements Planning and Enterprise Resource Planning

Which of the following most closely describes dependent demand?

The hierarchical diagram that depicts the subassemblies and components that are needed to produce and/or assemble a product is called a(n):

Budget overruns when implementing ERP systems are typically caused by: I.high equipment costs. II.high training costs. III.high capital interest charges. IV.costs of integrating and testing

Independent demand tends to be ___________,while dependent demand tends to be __________.

Given the following information,construct a product tree diagram and develop a material requirements plan that will yield 400 units of product P at the start of week 7. Use the following form:

One of the primary reports of MRP concerns changes to open orders.

The gross requirements of a given part or component are determined from:

The master production schedule (MPS)states which end items are to be produced.

What is the part-period method lot size for the order for the first period?

MRP usually involves inventory items that have independent demand.

What is the economic part-period (EPP)for ordering this item?

The planned-order releases at one level of an MRP plan determine the gross requirements at the next level down in the bill of material.

If 40 Ps are needed,and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies,how many Cs are needed?

ERP involves software that is used to manage and coordinate all the resources,information,and functions of an organization from a shared database.

The development and application of MRP is primarily associated with two developments: (1)managers recognizing the need to differentiate between independent and dependent demand,and (2)___________.

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

The bill of material contains information on lead times.

The MRP requires a list of the individual parts that will be converted to finished goods.

Dependent demand is derived demand.

Introduction to Operations Management

Competitiveness, Strategic Planning, and Productivity

Demand Forecasting

A: Product Design

B: Product Design

A: Strategic Capacity Planning

B: Strategic Capacity Planning

A: Process Design and Facility Layout

B: Process Design and Facility Layout

A: Design of Work Systems

B: Design of Work Systems

A: Location Planning and Analysis

B: Location Planning and Analysis

Management of Quality

A: Statistical Quality Control

B: Statistical Quality Control

Supply Chain Management

Inventory Management

Aggregate Operations Planning

A: Just-In-Time and Lean Production

B: Just-In-Time and Lean Production

Job and Staff Scheduling

Project Management

A: Waiting-Line Analysis

B: Waiting-Line Analysis

Filters

Independent demand tends to be _,while dependent demand tends to be .