Exam 14: Material Requirements Planning Mrpand Erp

A working MRP system allows a firm to react to even minor changes in production requirements.Discuss both the advantages and disadvantages of having such ability.

________ refers to the time units in a material requirements planning (MRP)system.

A(n)________ is a bill of material for components,usually assemblies that exist only temporarily;they are never inventoried.

A company is trying to implement MRP but is having trouble determining which order sizing method will minimize costs.Setup cost is $200 and holding cost is $2/period.If each period is 1 week,gross requirements are 270 units per 10 weeks,and there are 6 planned order releases for every 10 weeks,calculate the cost for lot-for-lot compared to EOQ for an entire year.Assume that EOQ and lot-for-lot are computed as though the usage will occur continually throughout the year.

The ________ technique may be applicable where a firm's parts and subassemblies are common to a variety of its products.

Bills of material organized by major subassemblies or by product options are called ________.

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

By convention,the top level in a bill of material is designated level 1.

Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity.

A bill of material lists the

The minimum record accuracy required for successful MRP is approximately

A process-focus facility (for example,a print shop)will likely schedule ________ as the focus of its master production schedule.

The Aggregate Plan,derived from the Master Production Schedule,specifies in more detail how much of which products is to be made at what times.

Describe the tactics for load smoothing in MRP.

Which of the following statements regarding lot-sizing is true?

Four A washers,Five B washers,Two C bolts,and a D bolt are required to make one Grill parts kit.If 100 grill part kits are needed how many more washers will be consumed than bolts?

You have seen several methods for lot sizing in MRP.Why is lot sizing important in MRP? Can too much concern be given lot sizing? Answer in a well-developed paragraph.

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

The Wagner-Whitin algorithm is the most widely used MRP lot-sizing technique.

A grill assembly takes 20 washers.Instead of listing these washers separately they are grouped into a single kit for production.The bill of material for the washers is classified as