Exam 14: Material Requirements Planning and Enterprise Resource Planning

Gross requirements for components are equal to the gross requirements of their immediate parent multiplied by the quantity per parent.

Which is true of a net-change MRP?

Develop a material requirements plan for end item P and its components, given the tree below. Assume that all lead times are one week, and that lot-for-lot ordering is used except for item F, which is ordered in multiples of 400 units. One hundred units of P are needed at the start of each of weeks 4 and 8. Beginning inventories are: 20 P, 100 A, and 200 F. Scheduled receipts are: 800 F at the start of week 1.

For relatively stable situations,a net-change MRP is better suited than using regenerative MRP.

The emergence of ERP systems was primarily because they are less complex to use than MRP systems.

If 17 Ps are needed,and on-hand inventory consists of 10 As,15 Bs,20 Cs,12 Ms and 5 Ns,how many Cs are needed?

For a given component in an MRP plan,under lot-for-lot ordering,planned order sizes are equal to net requirements.

A net-change MRP is one that involves periodically updating all aspects of an MRP system.

Fixed-interval ordering in MRP places orders that cover a predetermined number of periods.

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

MRP requires information on inventory on hand,open orders and lead times and purchase orders for each item in stock.

Load reports show capacity requirements for departments or work centres.

Which of the following are primary reports provided by MRP systems? I.Planned order releases II.Immediate order releases III.Demand history reports IV.Changes to open orders

For which period will the second order be submitted using the part period lot sizing method?

The three basic inputs of MRP are: 1)the bill of material; 2)inventory on hand,open orders and lead times; and 3)planned order releases.

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

Given the following data,construct a material requirements plan which will result in 100 units of Parent #1 (P1)at the beginning of week 6,and 200 units of Parent #2 (P2)at the beginning of week 8:

When should an order for Wherezats be released?

If 17 Ps are needed,and no on-hand inventory exists,how many Cs will be needed?

The planning horizon for the master production schedule (MPS)should cover or be longer than the cumulative lead time necessary to produce the end items.