Question 1

DRP is a time-phased stock-replenishment plan for all levels of a distribution network.

Accepted Answer

A) True 
 B)False  True

Question 2

Consider the following product structure.   If the demand for product A is 50 units,how many units of component E will be needed?

Accepted Answer

A) 4 
B) 100 
C) 200 
D) 250 
E) 300 
A) 4 
B) 100 
C) 200 
D) 250 
E) 300 E

Question 3

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

Accepted Answer

(1)Master production schedule (what is to be made,and when); (2)Specifications or bill of material (materials and parts required to make the product); (3)Inventory availability (what is in stock); (4)Purchase orders outstanding (what is on order,also called expected receipts); and (5)Lead times (how long does it takes to get various components)

Question 4

Gross material requirements do not take into account the amount of inventory on hand.

Accepted Answer

A) True 
 B)False

Question 5

What does the POQ interval equal?

Accepted Answer

A) the number of periods of average demand covered by the safety stock 
B) the same number of periods that are on the "not to be rescheduled" side of the time fence 
C) EOQ / maximum gross requirement 
D) the number of periods until the incoming projected on hand runs out 
E) EOQ / average demand per period 
A) the number of periods of average demand covered by the safety stock 
B) the same number of periods that are on the "not to be rescheduled" side of the time fence 
C) EOQ / maximum gross requirement 
D) the number of periods until the incoming projected on hand runs out 
E) EOQ / average demand per period

Question 6

Time fences divide that segment of the master schedule that can be revised from that section that is "not to be rescheduled."

Accepted Answer

A) True 
 B)False

Question 7

For the lot-sizing technique known as lot-for-lot to be appropriate:

Accepted Answer

A) future demand should be known for several weeks. 
B) setup cost should be relatively small. 
C) annual volume should be rather low. 
D) item unit cost should be relatively small. 
E) the independent demand rate should be very stable. 
A) future demand should be known for several weeks. 
B) setup cost should be relatively small. 
C) annual volume should be rather low. 
D) item unit cost should be relatively small. 
E) the independent demand rate should be very stable.

Question 8

Explain the difference between a gross requirements plan and a net requirements plan.

Accepted Answer

A gross requirements plan is a schedule

Question 9

Effective use of MRP and other dependent demand models does not require which of the following?

Accepted Answer

A) master production schedule 
B) bill of materials 
C) inventory availability 
D) lead times 
E) cost of individual components 
A) master production schedule 
B) bill of materials 
C) inventory availability 
D) lead times 
E) cost of individual components

Question 10

Describe the role of record accuracy in Wheeled Coach's successful use of MRP.

Accepted Answer

Wheeled Coach's record integrity is exce

Question 11

Planning bills of material are bills of material for "kits" of inexpensive items such as washers,nuts,and bolts.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following best describes a gross material requirements plan?

Accepted Answer

A) a schedule that shows total demand for an item,and when it must be ordered from a supplier or when production must be started 
B) an intermediate range plan for the scheduling of families of products 
C) a chart illustrating whether capacity has been exceeded 
D) a table that corrects scheduled quantities for inventory on hand 
E) a schedule showing which products are to be manufactured and in what quantities 
A) a schedule that shows total demand for an item,and when it must be ordered from a supplier or when production must be started 
B) an intermediate range plan for the scheduling of families of products 
C) a chart illustrating whether capacity has been exceeded 
D) a table that corrects scheduled quantities for inventory on hand 
E) a schedule showing which products are to be manufactured and in what quantities

Question 13

What is DRP?

Accepted Answer

DRP is a time-phased

Question 14

________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

Accepted Answer

Net material require

Question 15

A(n)________ system is packaged business software that automates and integrates the majority of business processes,shares common data and practices across the entire enterprise,and produces information in a real-time environment.

Accepted Answer

enterprise

Question 16

An order for 110 units of Product A has been placed.There are currently 60 units of Product A on hand.Each A requires 4 units of Part B.There are 20 units of B available.What are the net requirements for B?

Accepted Answer

A) 20 
B) 120 
C) 180 
D) 240 
E) 440 
A) 20 
B) 120 
C) 180 
D) 240 
E) 440

Question 17

What is the process of tracing upward in the bill of material from the component to the parent item in order to determine the cause for the component requirement?

Accepted Answer

A) net requirements planning 
B) time fencing 
C) pegging 
D) backtracking 
E) leveling 
A) net requirements planning 
B) time fencing 
C) pegging 
D) backtracking 
E) leveling

Question 18

Which of the following is TRUE regarding the POQ lot-sizing method?

Accepted Answer

A) Each POQ interval is recalculated at the time of the order release. 
B) Each order quantity and POQ interval are recalculated at the time of the order release. 
C) The POQ interval and all order quantities remain fixed throughout the planning horizon. 
D) Each order quantity is recalculated at the time of the order release. 
E) POQ lot sizes are always at least as large as the EOQ lot sizes would be. 
A) Each POQ interval is recalculated at the time of the order release. 
B) Each order quantity and POQ interval are recalculated at the time of the order release. 
C) The POQ interval and all order quantities remain fixed throughout the planning horizon. 
D) Each order quantity is recalculated at the time of the order release. 
E) POQ lot sizes are always at least as large as the EOQ lot sizes would be.

Question 19

A dependent demand item is so called because its demand is dependent on customer preferences.

Accepted Answer

A) True 
 B)False

Question 20

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

Accepted Answer

A) True 
 B)False

Exam 15: Material Requirements Planning Mrpand Erp

DRP is a time-phased stock-replenishment plan for all levels of a distribution network.

Consider the following product structure. If the demand for product A is 50 units,how many units of component E will be needed?

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

Gross material requirements do not take into account the amount of inventory on hand.

What does the POQ interval equal?

Time fences divide that segment of the master schedule that can be revised from that section that is "not to be rescheduled."

For the lot-sizing technique known as lot-for-lot to be appropriate:

Explain the difference between a gross requirements plan and a net requirements plan.

Effective use of MRP and other dependent demand models does not require which of the following?

Describe the role of record accuracy in Wheeled Coach's successful use of MRP.

Planning bills of material are bills of material for "kits" of inexpensive items such as washers,nuts,and bolts.

Which of the following best describes a gross material requirements plan?

What is DRP?

________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

A(n)________ system is packaged business software that automates and integrates the majority of business processes,shares common data and practices across the entire enterprise,and produces information in a real-time environment.

An order for 110 units of Product A has been placed.There are currently 60 units of Product A on hand.Each A requires 4 units of Part B.There are 20 units of B available.What are the net requirements for B?

What is the process of tracing upward in the bill of material from the component to the parent item in order to determine the cause for the component requirement?

Which of the following is TRUE regarding the POQ lot-sizing method?

A dependent demand item is so called because its demand is dependent on customer preferences.

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

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