Exam 7: Dependent Demand Inventory

Answer the following.

Planned receipts are future orders that have not yet been released but are planned in order to avoid a shortage or backlog of inventory.

A bill of materials database is a basic output of an MRP system.

A product structure tree is often used to visually represent the.

The report for a work center that projects already scheduled and expected future capacity requirements against capacity availability is called.

Fixed order quantity lot size has a variable order size based on lead time.

Periodic order quantities are designed to order exactly the amount required for a specified period of time.

____ represent/represents orders that have been placed but not yet received or completed.

Give three examples of specific inventory transactions.

Scheduled receipts are the total number of units of a part derived from all parent production plans.

If 4000 six-pack colas are required,and 2000 six-packs are on hand,how many individual cans should be ordered if 3000 individual cans are also on hand?

An MRP system is static,that is,once a plan is created,it is seldom modified.

Every finished product has a bill of materials that specifies all components required to produce one unit of the finished product.

Recording inventory transactions accurately and promptly is a critical component of an effective MRP system.

A time bucket is the period in the future that is being planned.

Small changes to the bill of materials are normally not critical to the MRP system and have little impact on the final output.

Safety stock is excess inventory that a company holds to guard against uncertainty in demand,lead time,and supply.

Give three options a manager can take when a load report is generated which shows that more capacity is required than is available.

Provide three factors that may influence the lot size decision for a fixed order quantity.

Lead time is the estimate of the time between releasing an order and receiving the order,and is always known with certainty.