Question 1

Consider the following product structure.Fifty units of Product A are needed.How many units of B,C,D,and E are needed?

Accepted Answer

Item B: 50(2)= 100 units;Item C: 50( 3)= 150 units;Item D: 50(2)(1)+ 50(3)(1)= 250 units;Item E: 50(3)(2)= 300 units

Question 2

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

Accepted Answer

modular bills

Question 3

Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation?

Accepted Answer

A) The material plan must meet both schedule requirements and facility capabilities. 
B) The plan must be executed as designed. 
C) Inventory investment must be minimized. 
D) Excellent record integrity must be maintained. 
E) The process must adhere to stringent quality control standards. 
A) The material plan must meet both schedule requirements and facility capabilities. 
B) The plan must be executed as designed. 
C) Inventory investment must be minimized. 
D) Excellent record integrity must be maintained. 
E) The process must adhere to stringent quality control standards. E

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Consider the following product structure.   If the demand for product A is 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?

Accepted Answer

A) 3 
B) 40 
C) 70 
D) 90 
E) 110 
A) 3 
B) 40 
C) 70 
D) 90 
E) 110

Question 6

If the explosion of the bill of material tells MRP how much of each part is needed,how does MRP learn when each of these parts is needed?

Accepted Answer

Timing is established with the

Question 7

Product A is made from 2 Bs and 1 C.Lead times for A,B,and C are 2,3,and 2 weeks respectively.Currently there are 2 Bs and a 5 Cs on hand,with 5 of each scheduled to arrive at the end of week 1.If 20 As are needed during week 4,can the order be completed (it is the start of week 0 currently)?

Accepted Answer

To produce 20 As requires 40 B

Question 8

Distribution resource planning (DRP)is:

Accepted Answer

A) a transportation plan to ship materials to warehouses. 
B) a time-phased stock replenishment plan for all levels of a distribution network. 
C) a shipping plan from a central warehouse to retail warehouses. 
D) material requirements planning with a feedback loop from distribution centers. 
E) a material requirements planning package used exclusively by warehouses. 
A) a transportation plan to ship materials to warehouses. 
B) a time-phased stock replenishment plan for all levels of a distribution network. 
C) a shipping plan from a central warehouse to retail warehouses. 
D) material requirements planning with a feedback loop from distribution centers. 
E) a material requirements planning package used exclusively by warehouses.

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

MRP II is accurately described as:

Accepted Answer

A) MRP software designed for services. 
B) MRP with a new set of computer programs that execute on microcomputers. 
C) material resource planning. 
D) an enhancement of MRP that plans for all levels of the supply chain. 
E) a new generation of MRP software that extends MRP to planning and scheduling functions. 
A) MRP software designed for services. 
B) MRP with a new set of computer programs that execute on microcomputers. 
C) material resource planning. 
D) an enhancement of MRP that plans for all levels of the supply chain. 
E) a new generation of MRP software that extends MRP to planning and scheduling functions.

Question 11

Which of the following is FALSE concerning enterprise resource planning (ERP)?

Accepted Answer

A) It attempts to automate and integrate the majority of business processes. 
B) It shares common data and practices across the enterprise. 
C) It is inexpensive to implement. 
D) It provides and accesses information in a real-time environment. 
E) ERP software promises reduced transaction costs. 
A) It attempts to automate and integrate the majority of business processes. 
B) It shares common data and practices across the enterprise. 
C) It is inexpensive to implement. 
D) It provides and accesses information in a real-time environment. 
E) ERP software promises reduced transaction costs.

Question 12

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 13

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

Accepted Answer

Phantom bi

Question 14

The time-phased product structure,unlike the bill of material,adds the concept of lead times.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following lot-sizing techniques results in the lowest holding costs?

Accepted Answer

A) lot-for-lot 
B) EOQ 
C) POQ 
D) Wagner-Whitin algorithm 
E) the quantity discount model 
A) lot-for-lot 
B) EOQ 
C) POQ 
D) Wagner-Whitin algorithm 
E) the quantity discount model

Question 17

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Accepted Answer

A) lot-for-lot 
B) EOQ 
C) POQ 
D) the Wagner-Whitin algorithm 
E) All of the above are appropriate for the situation. 
A) lot-for-lot 
B) EOQ 
C) POQ 
D) the Wagner-Whitin algorithm 
E) All of the above are appropriate for the situation.

Question 18

Which of the following statements best compares modular bills and phantom bills?

Accepted Answer

A) Both pertain to assemblies that are not inventoried. 
B) There is no difference between the two. 
C) Both pertain to assemblies that are inventoried. 
D) Modular bills are used for assemblies that are not inventoried,unlike phantom bills. 
E) Modular bills represent subassemblies that actually exist and are inventoried,while phantom bills represent subassemblies that exist only temporarily and are not inventoried. 
A) Both pertain to assemblies that are not inventoried. 
B) There is no difference between the two. 
C) Both pertain to assemblies that are inventoried. 
D) Modular bills are used for assemblies that are not inventoried,unlike phantom bills. 
E) Modular bills represent subassemblies that actually exist and are inventoried,while phantom bills represent subassemblies that exist only temporarily and are not inventoried.

Question 19

Construct a product structure tree for a movie purchased in DVD format.Assume that it contains a single DVD disk.Don't be concerned with artwork-you may use labeled boxes for your parts and assemblies.

Accepted Answer

Not all DVDs are alike in their construc

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 14: Material Requirements Planning Mrpand Erp

Consider the following product structure.Fifty units of Product A are needed.How many units of B,C,D,and E are needed?

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

Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation?

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 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?

If the explosion of the bill of material tells MRP how much of each part is needed,how does MRP learn when each of these parts is needed?

Product A is made from 2 Bs and 1 C.Lead times for A,B,and C are 2,3,and 2 weeks respectively.Currently there are 2 Bs and a 5 Cs on hand,with 5 of each scheduled to arrive at the end of week 1.If 20 As are needed during week 4,can the order be completed (it is the start of week 0 currently)?

Distribution resource planning (DRP)is:

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

MRP II is accurately described as:

Which of the following is FALSE concerning enterprise resource planning (ERP)?

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?

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

The time-phased product structure,unlike the bill of material,adds the concept of lead times.

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

Which of the following lot-sizing techniques results in the lowest holding costs?

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Which of the following statements best compares modular bills and phantom bills?

Construct a product structure tree for a movie purchased in DVD format.Assume that it contains a single DVD disk.Don't be concerned with artwork-you may use labeled boxes for your parts and assemblies.

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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