Question 1

Explain why,in a dependent demand environment,MRP does a better job of estimating the need to replenish inventory items than does the reorder point system.

Accepted Answer

MRP works better for dependent-demand environments because statistical forecasting for components with lumpy demand results in large forecast errors.It also provides managers with information useful for planning capacities and estimating financial requirements,and it automatically updates the demand and inventory-replenishment schedules of components when the production schedule of parent items changes.

Question 2

Operations produces a number of items in one production period.Those items that are not produced for a specific customer order are ________.

Accepted Answer

available to promise

Question 3

Table 16.1  
-Use the information in partially completed Table 16.1.What is the MPS start quantity in week 4?

Accepted Answer

A) 0 units 
B) 20 units 
C) 30 units 
D) 60 units 
A) 0 units 
B) 20 units 
C) 30 units 
D) 60 units A

Question 4

Complete the following MPS Record

Accepted Answer

The answer of Complete the following MPS Record  ...

Question 5

Management wishes to use a POQ lot-sizing rule for an item that experiences an average demand of 30 units per week.If the desired average lot size is 120 units,what should P be?

Accepted Answer

A) zero or one weeks 
B) two or three weeks 
C) four or five weeks 
D) more than five weeks 
A) zero or one weeks 
B) two or three weeks 
C) four or five weeks 
D) more than five weeks

Question 6

Table 16.3  
-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) 150 units;week 1 
B) 150 units;week 2 
C) 240 units;week 1 
D) 240 units: week 2 
A) 150 units;week 1 
B) 150 units;week 2 
C) 240 units;week 1 
D) 240 units: week 2

Question 7

Complete the following MRP record using the FOQ rule:

Accepted Answer

The answer of Complete the following MRP record using the...

Question 8

Table 16.2  
-Use the information in partially completed Table 16.2.What is the available-to-promise (ATP)inventory in week 6?

Accepted Answer

A) 0 units 
B) 35 units 
C) 45 units 
D) 80 units 
A) 0 units 
B) 35 units 
C) 45 units 
D) 80 units

Question 9

Which of the following statements about service resource planning is TRUE?

Accepted Answer

A) The service analogy to the BOM in a manufacturing company is a bill of lading (BOL). 
B) One resource that every service provider manages is cash. 
C) There is no such thing as dependent demand in the service sector. 
D) As services are completed,the accounts receivable decrease. 
A) The service analogy to the BOM in a manufacturing company is a bill of lading (BOL). 
B) One resource that every service provider manages is cash. 
C) There is no such thing as dependent demand in the service sector. 
D) As services are completed,the accounts receivable decrease.

Question 10

Figure 16.8     Inventory amounts indicated in the table are available to produce the end item indicated in this bill of materials.
-Use Figure 16.8 to answer this question.How many additional units of F are needed to produce twelve end items?

Accepted Answer

A) 236 
B) 214 
C) 182 
D) 176 
A) 236 
B) 214 
C) 182 
D) 176

Question 11

Table 16.4
Consider the following MPS,BOM,and inventory data.Blank MRP records are provided at the end of this exam.
Master Production Schedule: The following table shows the MPS start quantities.   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  
-Use the information in Table 16.4.Which one of the following statements about item C is BEST?

Accepted Answer

A) The 100-unit scheduled receipt of 200 units in week 1 can be delayed until week 2 without delaying item D's first planned order release. 
B) Its second planned order release is for 200 units in week 6. 
C) It has a planned receipt of 180 units in week 5. 
D) An order for 60 units should be placed now (in week 1). 
A) The 100-unit scheduled receipt of 200 units in week 1 can be delayed until week 2 without delaying item D's first planned order release. 
B) Its second planned order release is for 200 units in week 6. 
C) It has a planned receipt of 180 units in week 5. 
D) An order for 60 units should be placed now (in week 1).

Question 12

Table 16.7
Viola Products produces one item with the following bill of materials   A recent check of their inventory reveals the following quantities on hand.
   Currently no scheduled receipts exist for any of the dependent demand items.
-Use Table 16.7 to answer this question.How many additional units of J are needed to produce seven end items?

Accepted Answer

A) 25 
B) 36 
C) 47 
D) 58 
A) 25 
B) 36 
C) 47 
D) 58

Question 13

Table 16.6  
-Use the information from Table 16.6.If an FOQ of 80 units is used,how many planned order releases are there for item XYZ?

Accepted Answer

A) zero or one 
B) two 
C) three 
D) more than three 
A) zero or one 
B) two 
C) three 
D) more than three

Question 14

Which one of the following is an input to the MRP system?

Accepted Answer

A) shop-floor schedules 
B) financial reports 
C) master production schedule 
D) purchasing orders 
A) shop-floor schedules 
B) financial reports 
C) master production schedule 
D) purchasing orders

Question 15

Complete the following MRP record using the POQ rule.

Accepted Answer

The answer of Complete the following MRP record using the...

Question 16

Complete the following MRP record using the L4L rule:

Accepted Answer

The answer of Complete the following MRP record using the...

Question 17

Explain the difference between independent and dependent demand and illustrate your explanation with an example.

Accepted Answer

Examples will vary.The key difference be

Question 18

Which one of the following is a feature of MRP II,but not available in basic MRP systems?

Accepted Answer

A) financial projections 
B) action notices 
C) dispatch lists 
D) capacity reporting 
A) financial projections 
B) action notices 
C) dispatch lists 
D) capacity reporting

Question 19

Which of the following statements concerning MRP is TRUE?

Accepted Answer

A) Dependent-demand items tend to experience relatively constant demand rates. 
B) MRP systems use independent demands for each component item. 
C) Capacity requirements planning (CRP)uses open orders (scheduled receipts)and planned order releases to estimate capacity requirements for critical workstations. 
D) The most accurate way to forecast dependent demand is to examine past usage rates. 
A) Dependent-demand items tend to experience relatively constant demand rates. 
B) MRP systems use independent demands for each component item. 
C) Capacity requirements planning (CRP)uses open orders (scheduled receipts)and planned order releases to estimate capacity requirements for critical workstations. 
D) The most accurate way to forecast dependent demand is to examine past usage rates.

Question 20

Case Study 16.1
Sunshine Manufacturing produces three products: X,Y,Z.The production of these end items is controlled by an MRP system.Each end item X is assembled with two components of A and one component of B.Each end item of Y is assembled with two components of C and one component of A.End item Z is assembled from one unit of D and one unit of C;D is manufactured from one unit of A;and C is manufactured from one unit of B.
-Use the information in Case Study 16.1.Which of the following sequences is an acceptable way to process the inventory records for components A,B,C,and D?

Accepted Answer

A) A B C D 
B) D A B C 
C) B A D C 
D) C B D A 
A) A B C D 
B) D A B C 
C) B A D C 
D) C B D A

Exam 16: Resource Planning

Explain why,in a dependent demand environment,MRP does a better job of estimating the need to replenish inventory items than does the reorder point system.

Operations produces a number of items in one production period.Those items that are not produced for a specific customer order are ________.

Table 16.1 -Use the information in partially completed Table 16.1.What is the MPS start quantity in week 4?

Complete the following MPS Record

Management wishes to use a POQ lot-sizing rule for an item that experiences an average demand of 30 units per week.If the desired average lot size is 120 units,what should P be?

Table 16.3 -Use the following MRP record to answer the question. What are the quantity and the week of the first planned order release?

Complete the following MRP record using the FOQ rule:

Table 16.2 -Use the information in partially completed Table 16.2.What is the available-to-promise (ATP)inventory in week 6?

Which of the following statements about service resource planning is TRUE?

Figure 16.8 Inventory amounts indicated in the table are available to produce the end item indicated in this bill of materials. -Use Figure 16.8 to answer this question.How many additional units of F are needed to produce twelve end items?

Table 16.6 -Use the information from Table 16.6.If an FOQ of 80 units is used,how many planned order releases are there for item XYZ?

Which one of the following is an input to the MRP system?

Complete the following MRP record using the POQ rule.

Complete the following MRP record using the L4L rule:

Explain the difference between independent and dependent demand and illustrate your explanation with an example.

Which one of the following is a feature of MRP II,but not available in basic MRP systems?

Which of the following statements concerning MRP is TRUE?

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