Question 1

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 E

Question 2

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 C

Question 3

________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Accepted Answer

Time fences

Question 4

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 5

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 6

Consider the following requirements for a certain product.
   Beginning inventory = 500 units
Setup cost = $500 per setup
Lead time = 1 week
Holding cost = $3 per unit per week
a.Develop the lot-for-lot MRP table.
b.Calculate the total relevant costs.

Accepted Answer

There are three setups at $500 each,tota

Question 7

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

Accepted Answer

A gross requirements plan is a schedule

Question 8

It is week 1 and there are currently 20 As in stock.We need 300 As at the start of week 5.If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week,when and how large of an order should be placed to meet the requirement of 300 As?

Accepted Answer

A) Week 1,300 As 
B) Week 1,40 As 
C) Week 5,40 As 
D) Week 4,40 As 
E) Week 4,300 As 
A) Week 1,300 As 
B) Week 1,40 As 
C) Week 5,40 As 
D) Week 4,40 As 
E) Week 4,300 As

Question 9

An order for 110 units of Product M has been placed.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.What are the net requirements for N?

Accepted Answer

A) 150 
B) 170 
C) 300 
D) 320 
E) 440 
A) 150 
B) 170 
C) 300 
D) 320 
E) 440

Question 10

________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Accepted Answer

The answer of ________ is a lot-sizing technique that generates...

Question 11

A very simple product (A)consists of a base (B)and a casting (C).The base consists of a plate (P)and three fasteners (F).There are currently 30 castings and 100 bases on hand.Final assembly takes one week.The casting has a lead time of three weeks.All other parts have one-week lead times.There are no scheduled receipts.All components use the lot-for-lot technique.The master schedule requires 80 units of product A in week 5 and 120 in week 8.Produce the MRP for the upcoming eight weeks.Produce a list of all planned order releases.

Accepted Answer

The answer of A very simple product (A)consists of a...

Question 12

Wheeled Coach uses ________ as the catalyst for low inventory,high quality,tight schedules,and accurate records.

Accepted Answer

material r

Question 13

A(n)________ can illustrate whether a work center has been scheduled beyond its capacity.

Accepted Answer

load repor

Question 14

Jacquie Welkener,operations manager for ABC Technologies,must schedule work for the next five days.Each unit takes 30 minutes to process.Available capacity is 8 hours per day.The production order quantities are 12,18,20,13,and 17 for Monday through Friday,respectively.What should be the production plan?

Accepted Answer

Sixteen units should be produced each da

Question 15

Low-level coding means that:

Accepted Answer

A) a final item has only a few levels in the BOM structure. 
B) the code being used is the code for the lowest level in the BOM structure. 
C) a component item is coded at the lowest level at which it appears in the BOM structure. 
D) the top level of the BOM is below level zero and that BOMs are not organized around the finished product. 
E) the lowest-paid staff member in the production department performs the coding. 
A) a final item has only a few levels in the BOM structure. 
B) the code being used is the code for the lowest level in the BOM structure. 
C) a component item is coded at the lowest level at which it appears in the BOM structure. 
D) the top level of the BOM is below level zero and that BOMs are not organized around the finished product. 
E) the lowest-paid staff member in the production department performs the coding.

Question 16

Capacity planning in closed-loop MRP:

Accepted Answer

A) utilizes feedback about workload from each work center. 
B) may make use of resource requirements profiles (load reports). 
C) may smooth work center loads with such tactics as overlapping and lot splitting. 
D) does not add capacity,but rather seeks effective use of existing capacity. 
E) All of the above are true. 
A) utilizes feedback about workload from each work center. 
B) may make use of resource requirements profiles (load reports). 
C) may smooth work center loads with such tactics as overlapping and lot splitting. 
D) does not add capacity,but rather seeks effective use of existing capacity. 
E) All of the above are true.

Question 17

If a load report (resource requirements profile)shows a work center scheduled beyond capacity:

Accepted Answer

A) the company must add capacity by enlarging the facility. 
B) the company must add capacity by such tactics as overtime and subcontracting. 
C) the work center's load may be smoothed by such tactics as operations splitting or lot splitting. 
D) the aggregate plan must be revised. 
E) the Wagner-Whitin algorithm should be used to rebalance the load. 
A) the company must add capacity by enlarging the facility. 
B) the company must add capacity by such tactics as overtime and subcontracting. 
C) the work center's load may be smoothed by such tactics as operations splitting or lot splitting. 
D) the aggregate plan must be revised. 
E) the Wagner-Whitin algorithm should be used to rebalance the load.

Question 18

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

Accepted Answer

A) phantom bill 
B) component bill 
C) modular bill 
D) low-level bill 
E) planning bill 
A) phantom bill 
B) component bill 
C) modular bill 
D) low-level bill 
E) planning bill

Question 19

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

Accepted Answer

Phantom bi

Question 20

If 100 units of Q are needed and 10 are already in stock,then the gross requirement is 100 and the net requirement is 90.

Accepted Answer

A) True 
 B)False

Exam 14: Material Requirements Planning Mrpand ERP

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

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?

________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

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

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

Consider the following requirements for a certain product. Beginning inventory = 500 units Setup cost = $500 per setup Lead time = 1 week Holding cost = $3 per unit per week a.Develop the lot-for-lot MRP table. b.Calculate the total relevant costs.

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

It is week 1 and there are currently 20 As in stock.We need 300 As at the start of week 5.If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week,when and how large of an order should be placed to meet the requirement of 300 As?

An order for 110 units of Product M has been placed.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.What are the net requirements for N?

________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Wheeled Coach uses ________ as the catalyst for low inventory,high quality,tight schedules,and accurate records.

A(n)________ can illustrate whether a work center has been scheduled beyond its capacity.

Low-level coding means that:

Capacity planning in closed-loop MRP:

If a load report (resource requirements profile)shows a work center scheduled beyond capacity:

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

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

If 100 units of Q are needed and 10 are already in stock,then the gross requirement is 100 and the net requirement is 90.

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