Question 1

Successful MRP implementation requires:

Accepted Answer

A) Management support,parts explosion,and adequate computer support 
B) Marketing support,master schedule,and bill of materials 
C) Management support,accurate data,and adequate computer support 
D) None of the above 
A) Management support,parts explosion,and adequate computer support 
B) Marketing support,master schedule,and bill of materials 
C) Management support,accurate data,and adequate computer support 
D) None of the above C

Question 2

When a company uses an ERP system,the different functional areas of the business will share a common database.

Accepted Answer

A) True 
 B)False  True

Question 3

In MRP "scheduled receipts" are:

Accepted Answer

A) Identical to "planned order receipts" 
B) Identical to "planned order releases" 
C) Identical to "net requirements" 
D) Open orders not delivered yet 
A) Identical to "planned order receipts" 
B) Identical to "planned order releases" 
C) Identical to "net requirements" 
D) Open orders not delivered yet D

Question 4

The parts explosion results in the following outputs:

Accepted Answer

A) Purchase orders and S&OP (aggregate planning) 
B) Purchase orders and bill of materials 
C) Purchase orders and shop orders 
D) Shop orders and inventory orders 
A) Purchase orders and S&OP (aggregate planning) 
B) Purchase orders and bill of materials 
C) Purchase orders and shop orders 
D) Shop orders and inventory orders

Question 5

A requirements-based system derives orders from:

Accepted Answer

A) Customer requests 
B) Forecast 
C) Bill of materials 
D) Master schedule 
A) Customer requests 
B) Forecast 
C) Bill of materials 
D) Master schedule

Question 6

MRP systems work better in a line flow system compared to a job shop.

Accepted Answer

A) True 
 B)False

Question 7

MRP is a type of pull system.

Accepted Answer

A) True 
 B)False

Question 8

A replenishment-based system derives orders from:

Accepted Answer

A) Capacity available 
B) Forecast or customer request 
C) Bill of materials 
D) Master schedule 
A) Capacity available 
B) Forecast or customer request 
C) Bill of materials 
D) Master schedule

Question 9

_______ system uses requirements order philosophy,while _____ system uses replenishment order philosophy.

Accepted Answer

A) Order point,MRP 
B) MRP,order point 
C) EOQ,Quantity Discount 
D) P,Q 
A) Order point,MRP 
B) MRP,order point 
C) EOQ,Quantity Discount 
D) P,Q

Question 10

The master schedule should be frozen inside the production lead-time.

Accepted Answer

A) True 
 B)False

Question 11

Compare and contrast MRP systems and Order Point systems of managing inventories.When do firms prefer MRP systems to Order Point Systems? Can MRP systems be used while managing capacity in a factory? Provide sufficient justification for your answer.

Accepted Answer

MRP systems are typically preferred for

Question 12

The master production schedule for Product A shows a need for 30 units,and Product B shows a need of 25 units.To manufacture a unit of Product A,three units of component C are required.To manufacture a unit of Product B,four units of component C are required.Determine the gross requirements for component C to complete production.

Accepted Answer

A) 55 
B) 190 
C) 110 
D) 380 
E) None of the above 
A) 55 
B) 190 
C) 110 
D) 380 
E) None of the above

Question 13

In MRP systems,inventories are managed according to their dollar usage values (i.e.,high dollar usage inventories are more carefully managed compared to low dollar usage inventories).

Accepted Answer

A) True 
 B)False

Question 14

Safety stock in an MRP system:

Accepted Answer

A) Is never needed 
B) Is used to provide flexibility to meet changing customer requirements 
C) Must provide a 100% service level 
D) Is planned at the part level,independent of the safety stock of other parts 
A) Is never needed 
B) Is used to provide flexibility to meet changing customer requirements 
C) Must provide a 100% service level 
D) Is planned at the part level,independent of the safety stock of other parts

Question 15

Which system specifies the output of the operations function?

Accepted Answer

A) Parts explosion 
B) Bill of materials 
C) Master scheduling 
D) Capacity planning 
A) Parts explosion 
B) Bill of materials 
C) Master scheduling 
D) Capacity planning

Question 16

Forecasting demand in MRP Systems is based on the past demand patterns for components.

Accepted Answer

A) True 
 B)False

Question 17

The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems.

Accepted Answer

A) True 
 B)False

Question 18

The bill of materials:

Accepted Answer

A) Shows how much inventory is available 
B) Is a bill sent to the customer for material ordered 
C) Is a list of all materials required to produce a part 
D) None of the above 
A) Shows how much inventory is available 
B) Is a bill sent to the customer for material ordered 
C) Is a list of all materials required to produce a part 
D) None of the above

Question 19

The master schedule is prepared for product families.

Accepted Answer

A) True 
 B)False

Question 20

Type I Material requirements planning systems:

Accepted Answer

A) Are push production systems 
B) Assume infinite capacity while scheduling the jobs in a factory 
C) Schedule backward in time starting with the due date of the job 
D) All of the above 
A) Are push production systems 
B) Assume infinite capacity while scheduling the jobs in a factory 
C) Schedule backward in time starting with the due date of the job 
D) All of the above

Successful MRP implementation requires:

When a company uses an ERP system,the different functional areas of the business will share a common database.

In MRP "scheduled receipts" are:

The parts explosion results in the following outputs:

A requirements-based system derives orders from:

MRP systems work better in a line flow system compared to a job shop.

MRP is a type of pull system.

A replenishment-based system derives orders from:

___ system uses requirements order philosophy,while _ system uses replenishment order philosophy.

The master schedule should be frozen inside the production lead-time.

Compare and contrast MRP systems and Order Point systems of managing inventories.When do firms prefer MRP systems to Order Point Systems? Can MRP systems be used while managing capacity in a factory? Provide sufficient justification for your answer.

In MRP systems,inventories are managed according to their dollar usage values (i.e.,high dollar usage inventories are more carefully managed compared to low dollar usage inventories).

Safety stock in an MRP system:

Which system specifies the output of the operations function?

Forecasting demand in MRP Systems is based on the past demand patterns for components.

The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems.

The bill of materials:

The master schedule is prepared for product families.

Type I Material requirements planning systems:

The Operations Function

Operations and Supply Chain Strategy

Product Design

Process Selection

Service Delivery System Design

Process-Flow Analysis

Lean Thinking and Lean Systems

Managing Quality

Quality Control and Improvement

Supply Chain Management

Forecasting

Capacity Planning

Scheduling Operations

Project Planning and Scheduling

Independent Demand Inventory

Filters

Exam 16: Materials Requirements Planning and ERP

Successful MRP implementation requires:

When a company uses an ERP system,the different functional areas of the business will share a common database.

In MRP "scheduled receipts" are:

The parts explosion results in the following outputs:

A requirements-based system derives orders from:

MRP systems work better in a line flow system compared to a job shop.

MRP is a type of pull system.

A replenishment-based system derives orders from:

_______ system uses requirements order philosophy,while _____ system uses replenishment order philosophy.

The master schedule should be frozen inside the production lead-time.

Compare and contrast MRP systems and Order Point systems of managing inventories.When do firms prefer MRP systems to Order Point Systems? Can MRP systems be used while managing capacity in a factory? Provide sufficient justification for your answer.

In MRP systems,inventories are managed according to their dollar usage values (i.e.,high dollar usage inventories are more carefully managed compared to low dollar usage inventories).

Safety stock in an MRP system:

Which system specifies the output of the operations function?

Forecasting demand in MRP Systems is based on the past demand patterns for components.

The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems.

The bill of materials:

The master schedule is prepared for product families.

Type I Material requirements planning systems:

The Operations Function

Operations and Supply Chain Strategy

Product Design

Process Selection

Service Delivery System Design

Process-Flow Analysis

Lean Thinking and Lean Systems

Managing Quality

Quality Control and Improvement

Supply Chain Management

Forecasting

Capacity Planning

Scheduling Operations

Project Planning and Scheduling

Independent Demand Inventory

Filters

___ system uses requirements order philosophy,while _ system uses replenishment order philosophy.