Question 1

Which of the following statements on MRP is TRUE?

Accepted Answer

A) The payoffs from MRP tend to be greater when there are more BOM levels and larger lot sizes. 
B) When MRP systems are enhanced to include financial reporting they are called basic MRP systems,or "little mrp." 
C) The fixed order quantity (FOQ)eliminates remnants. 
D) MRP is an inventory control system that derives the gross requirements of the end items from purchase commitments with vendors. 
A) The payoffs from MRP tend to be greater when there are more BOM levels and larger lot sizes. 
B) When MRP systems are enhanced to include financial reporting they are called basic MRP systems,or "little mrp." 
C) The fixed order quantity (FOQ)eliminates remnants. 
D) MRP is an inventory control system that derives the gross requirements of the end items from purchase commitments with vendors. A

Question 2

Which best defines the gross requirements for a component item?

Accepted Answer

A) the forecasted customer demand for the component 
B) the amount of safety stock needed to buffer against uncertainties 
C) the sum of gross requirements for all parents of the component 
D) the total demand for the component derived from all immediate parents 
A) the forecasted customer demand for the component 
B) the amount of safety stock needed to buffer against uncertainties 
C) the sum of gross requirements for all parents of the component 
D) the total demand for the component derived from all immediate parents D

Question 3

A parent is any item that may go through one or more operations to be processed into one or more components.

Accepted Answer

A) True 
 B)False  False

Question 4

An item made from water more components is referred to as a parent item.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about Enterprise Resource Planning (ERP)is TRUE?

Accepted Answer

A) ERP allows customers to access the system. 
B) ERP does not include quality management. 
C) ERP is similar to MRPII,except that it extends to service operations. 
D) ERP is specifically designed for salespersons that want to access the system away from the office. 
A) ERP allows customers to access the system. 
B) ERP does not include quality management. 
C) ERP is similar to MRPII,except that it extends to service operations. 
D) ERP is specifically designed for salespersons that want to access the system away from the office.

Question 6

Table 13.5  
-Use the following MRP record to answer the question.   What is the total planned order release quantity for item QRS? (Sum up the planned order releases for all 8 weeks)

Accepted Answer

A) less than or equal to 100 units 
B) greater than 100 units but less than or equal to 200 units 
C) greater than 200 units but less than or equal to 300 units 
D) greater than 300 units 
A) less than or equal to 100 units 
B) greater than 100 units but less than or equal to 200 units 
C) greater than 200 units but less than or equal to 300 units 
D) greater than 300 units

Question 7

Material requirements planning (MRP)is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Accepted Answer

A) True 
 B)False

Question 8

Table 13.7  
-Use the information from Table 13.7.If a L4L lot-sizing rule is used,how many planned order releases are there for item XYZ?

Accepted Answer

A) 0 or 1 
B) 2 or 3 
C) 4 or 5 
D) more than 5 
A) 0 or 1 
B) 2 or 3 
C) 4 or 5 
D) more than 5

Question 9

Table 13.1  
-Use the following MRP record to answer the question.   What are the quantity and the week of the first planned order release?

Accepted Answer

A) 20 units;week 1 
B) 140 units;week 2 
C) 150 units;week 1 
D) 150 units: week 2 
A) 20 units;week 1 
B) 140 units;week 2 
C) 150 units;week 1 
D) 150 units: week 2

Question 10

The lot-for-lot lot sizing technique is particularly appropriate when demand is not very smooth and setup cost is small compared to holding costs.

Accepted Answer

A) True 
 B)False

Question 11

An action bucket is the first week's entry of the planned order release row.

Accepted Answer

A) True 
 B)False

Question 12

The underlying logic for level-by-level processing in an MRP system is

Accepted Answer

A) each item in a bill of material must be processed from the bottom up. 
B) items without safety stock quantities must be processed before items that have safety stocks greater than zero. 
C) items must be processed in order of increasing lead time. 
D) all parents of an item must be processed before that item is processed. 
A) each item in a bill of material must be processed from the bottom up. 
B) items without safety stock quantities must be processed before items that have safety stocks greater than zero. 
C) items must be processed in order of increasing lead time. 
D) all parents of an item must be processed before that item is processed.

Question 13

For items manufactured in-house,one component of lead time is waiting time.

Accepted Answer

A) True 
 B)False

Question 14

Safety stock is never used with material requirements planning systems.

Accepted Answer

A) True 
 B)False

Question 15

Julius testing: Dependent demand occurs because the quantity required is a function of the demand for other items held in inventory.

Accepted Answer

A) True 
 B)False

Question 16

The quantity required of a dependent demanded item is computed from the demand for the final products in which the item is used.

Accepted Answer

A) True 
 B)False

Question 17

________ is the degree to which a component has more than one immediate parent.

Accepted Answer

The answer of ________ is the degree to which a...

Question 18

The master production schedule (MPS)details how many end items will be produced within specified periods of time.

Accepted Answer

A) True 
 B)False

Question 19

Table 13.3
Consider the following MPS,BOM,and inventory data.You will need a blank MRP record to answer the question(s).
Master Production Schedule: the following table shows the MPS start quantities.
Week
   Bill of Material
-End item A uses 1 each of component C and 1 each of subassembly D.
-Subassembly D uses 2 each of component E and 2 each of component F.
-End item B uses 1 each of component C and 2 each of component F.
Selected Inventory Data
Item
  
-Use the information in Table 13.3.Which one of the following statements on item C is TRUE?

Accepted Answer

A) There will be no action notices for item C. 
B) There will be exactly one action notice,to release a new order. 
C) There will be exactly two action notices,to release a new order and delay the scheduled receipt. 
D) There will be more than two action notices. 
A) There will be no action notices for item C. 
B) There will be exactly one action notice,to release a new order. 
C) There will be exactly two action notices,to release a new order and delay the scheduled receipt. 
D) There will be more than two action notices.

Question 20

A purchased item is a component received by the company and taken out of inventory.

Accepted Answer

A) True 
 B)False

Exam 12: Resource Planning

Which of the following statements on MRP is TRUE?

Which best defines the gross requirements for a component item?

A parent is any item that may go through one or more operations to be processed into one or more components.

An item made from water more components is referred to as a parent item.

Which of the following statements about Enterprise Resource Planning (ERP)is TRUE?

Table 13.5 -Use the following MRP record to answer the question. What is the total planned order release quantity for item QRS? (Sum up the planned order releases for all 8 weeks)

Material requirements planning (MRP)is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Table 13.7 -Use the information from Table 13.7.If a L4L lot-sizing rule is used,how many planned order releases are there for item XYZ?

Table 13.1 -Use the following MRP record to answer the question. What are the quantity and the week of the first planned order release?

The lot-for-lot lot sizing technique is particularly appropriate when demand is not very smooth and setup cost is small compared to holding costs.

An action bucket is the first week's entry of the planned order release row.

The underlying logic for level-by-level processing in an MRP system is

For items manufactured in-house,one component of lead time is waiting time.

Safety stock is never used with material requirements planning systems.

Julius testing: Dependent demand occurs because the quantity required is a function of the demand for other items held in inventory.

The quantity required of a dependent demanded item is computed from the demand for the final products in which the item is used.

________ is the degree to which a component has more than one immediate parent.

The master production schedule (MPS)details how many end items will be produced within specified periods of time.

A purchased item is a component received by the company and taken out of inventory.

Creating Customer Value Through Operations

Supply Chain Management

Process Configuration

Capacity

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Waiting Lines

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Filters