Question 1

If annual demand is 1,000 units,annual holding cost is $0.50 per unit,and the cost per order is $10,what is the EOQ? ______________________________________

Accepted Answer

200
Explanation: From the equation,EOQ = 200 = Square root of (2 x 1,000 x 10/0.5)

Question 2

In a net change MRP system requirements and schedules are considered rigid and never updated.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following industry types will not benefit greatly from the application of MRP?

Accepted Answer

A)  Fabricate-to-order 
B)  Assemble-to-stock 
C)  Assemble-to-order 
D)  Manufacture-to-order 
E)  None of the above 
A)  Fabricate-to-order 
B)  Assemble-to-stock 
C)  Assemble-to-order 
D)  Manufacture-to-order 
E)  None of the above A

Question 4

Which of the following is not a lot sizing technique used in MRP systems?

Accepted Answer

A)  Lot-for-lot (L4L) 
B)  Economic order quantity (EOQ) 
C)  Least total cost (LT
C)  
D)  Least unit cost (LU
C)  
E)  Warehouse loading factor (WLF) 
A)  Lot-for-lot (L4L) 
B)  Economic order quantity (EOQ) 
C)  Least total cost (LT
C)  
D)  Least unit cost (LU
C)  
E)  Warehouse loading factor (WLF)

Question 5

Which of the following is not a production activity report generated by MRP?

Accepted Answer

A)  Exception report 
B)  Planning report 
C)  Performance control report 
D)  Planned-order schedules 
E)  Bill of materials report 
A)  Exception report 
B)  Planning report 
C)  Performance control report 
D)  Planned-order schedules 
E)  Bill of materials report

Question 6

In a typical inventory status record which of the following would you not expect to see?

Accepted Answer

A)  Scrap allowance 
B)  Order quantity 
C)  Gross requirements 
D)  Planned-order releases 
E)  Lost items 
A)  Scrap allowance 
B)  Order quantity 
C)  Gross requirements 
D)  Planned-order releases 
E)  Lost items

Question 7

Which of the following is an input file necessary to run an MRP system?

Accepted Answer

A)  Bill of materials (BOM)file 
B)  Quality management report 
C)  Exception reports 
D)  Planned-order schedules 
E)  Purchasing contracts 
A)  Bill of materials (BOM)file 
B)  Quality management report 
C)  Exception reports 
D)  Planned-order schedules 
E)  Purchasing contracts

Question 8

"Projected available balance" is a term referring to unsold finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 9

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding)each item in a product structure file and summing at all levels.

Accepted Answer

A) True 
 B)False

Question 10

Generally,determining lot sizes in MRP systems is simple.

Accepted Answer

A) True 
 B)False

Question 11

MRP stands for Material Requirements Planning.

Accepted Answer

A) True 
 B)False

Question 12

The deeper one looks into the product creation sequence,the more the requirements of dependent demand items tend to smooth out and become even over time.

Accepted Answer

A) True 
 B)False

Question 13

Net change MRP systems are "activity" driven.

Accepted Answer

A) True 
 B)False

Question 14

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size,picking the lot size with the lowest unit cost.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following files allows us to retrace a material requirement upward in the product structure through each level,identifying each parent item that created the demand?

Accepted Answer

A)  Planning bill of materials file 
B)  Modular bill of materials file 
C)  Super bill of materials file 
D)  Exception report file 
E)  Peg record file 
A)  Planning bill of materials file 
B)  Modular bill of materials file 
C)  Super bill of materials file 
D)  Exception report file 
E)  Peg record file

Question 16

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Accepted Answer

A) True 
 B)False

Question 17

The least unit cost method (LUC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

A) True 
 B)False

Question 18

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

Accepted Answer

A) True 
 B)False

Question 19

The lot-for-lot (L4L)lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

Accepted Answer

A) True 
 B)False

Question 20

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Accepted Answer

A) True 
 B)False

If annual demand is 1,000 units,annual holding cost is $0.50 per unit,and the cost per order is $10,what is the EOQ? ______________________________________

In a net change MRP system requirements and schedules are considered rigid and never updated.

Which of the following industry types will not benefit greatly from the application of MRP?

Which of the following is not a lot sizing technique used in MRP systems?

Which of the following is not a production activity report generated by MRP?

In a typical inventory status record which of the following would you not expect to see?

Which of the following is an input file necessary to run an MRP system?

"Projected available balance" is a term referring to unsold finished goods inventory.

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding)each item in a product structure file and summing at all levels.

Generally,determining lot sizes in MRP systems is simple.

MRP stands for Material Requirements Planning.

The deeper one looks into the product creation sequence,the more the requirements of dependent demand items tend to smooth out and become even over time.

Net change MRP systems are "activity" driven.

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size,picking the lot size with the lowest unit cost.

Which of the following files allows us to retrace a material requirement upward in the product structure through each level,identifying each parent item that created the demand?

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

The least unit cost method (LUC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

The lot-for-lot (L4L)lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

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Exam 9: Material Requirements Planning

If annual demand is 1,000 units,annual holding cost is $0.50 per unit,and the cost per order is $10,what is the EOQ? ______________________________________

In a net change MRP system requirements and schedules are considered rigid and never updated.

Which of the following industry types will not benefit greatly from the application of MRP?

Which of the following is not a lot sizing technique used in MRP systems?

Which of the following is not a production activity report generated by MRP?

In a typical inventory status record which of the following would you not expect to see?

Which of the following is an input file necessary to run an MRP system?

"Projected available balance" is a term referring to unsold finished goods inventory.

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding)each item in a product structure file and summing at all levels.

Generally,determining lot sizes in MRP systems is simple.

MRP stands for Material Requirements Planning.

The deeper one looks into the product creation sequence,the more the requirements of dependent demand items tend to smooth out and become even over time.

Net change MRP systems are "activity" driven.

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size,picking the lot size with the lowest unit cost.

Which of the following files allows us to retrace a material requirement upward in the product structure through each level,identifying each parent item that created the demand?

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

The least unit cost method (LUC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

The lot-for-lot (L4L)lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing and Service Processes

Service Processes

Sales and Operations Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters