Deck 12: Demand Planning: Forecasting and Demand Management

Question 1

Zanda Company is looking for a requirements planning system to help plan replenishment of its finished goods throughout its network of distribution centers.The type of system Zanda should consider is known as:

A)CRP.
B)DRP.
C)MRP.
D)ERP.

Answer 1

DRP.

Question 2

A master production schedule shows the following information: Using a lot-for-lot rule,what is the MPS quantity for week 4?

A)500
B)400
C)450
D)50

Answer 2

500

Question 3

If the cumulative lead time is eight weeks,for a project to be feasible the MPS planning horizon must be:

A)Exactly eight weeks.
B)At least eight weeks.
C)Less than eight weeks.
D)At least 16 weeks.

Answer 3

At least eight weeks.

Question 4

An MRP record for a motor is shown in the following table. What is the planned order release for week 4?

A)0
B)10,000
C)8,000
D)6,000

Question 5

Capacity requirements planning does all of the following EXCEPT:

A)Determine if a work center has the capacity to implement the MRP plan.
B)Use planned order releases and scheduled receipts to estimate work center loads.
C)Develop a load profile.
D)Recalculate the MRP plan.

Question 6

The longest lead-time path in the BOM is the:

A)Time bucket.
B)Planning horizon.
C)Time window.
D)Cumulative lead time.

Question 7

Which of the following is NOT an input into the MRP?

A)Bill of materials
B)Inventory records file
C)Master production schedule
D)Planned order release

Question 8

A bill of materials file contains:

A)Invoices for materials that must be paid in this period.
B)Lists of materials required to produce end item products.
C)Accounts payable for materials.
D)None of these.

Question 9

A master production schedule shows the following information: Based on the information in the MPS,what is the number of items that is available to promise in week 4?

A)1,200
B)700
C)500
D)1,500

Question 10

Materials requirements planning (MRP)systems are used primarily to:

A)Plan orders.
B)Plan lead time.
C)Plan amounts of end items to produce.
D)Plan distribution.

Question 11

A master production schedule shows the following information: What is the number of items available to promise for period 2?

A)0.
B)−20.
C)20.
D)None of these.

Question 12

The quantities of end items to be completed in each time period into the future is shown in a(n):

A)MRP.
B)MPS.
C)BOM.
D)ERP.

Question 13

MRP is a process that would be most applicable in which situation?

A)Planning requirements for repair parts for production equipment in a manufacturing plant.
B)Planning requirements for safety stocks of finished goods in a distribution center.
C)Planning requirements for bicycle seats in a bicycle production plant.
D)None of these.

Question 14

Planning for which of the following products would see the LEAST benefit from the use of an MRP system?

A)Microwave ovens
B)Mobile phones
C)Shampoo
D)Power lawn mowers

Question 15

A master production schedule shows the following information: Using a lot-for-lot rule,what is the MPS quantity for period 1?

A)90
B)80
C)100
D)40

Question 16

Constant changing of the master schedule and the resulting changes in the requirements for components is referred to as:

A)Master schedule dynamics.
B)System nervousness.
C)Bad planning.
D)MRP failure.

Question 17

Significant changes in an MPS quantity several weeks into the planning horizon can:

A)Make the MRP more accurate.
B)Cause inconsistencies in the MRP.
C)Reduce stockouts.
D)Increase safety stock.

Question 18

The positioning and replenishment of finished goods inventories at the retail level can be determined using:

A)MRP.
B)CRP.
C)DRP.
D)RFID.

Question 19

Jones Company uses widgets as component parts.In a particular week it has gross requirements for 250 units of widgets,beginning inventory of 50 widgets,and scheduled receipts of 350 widgets.Available inventory for the next period is:

A)650.
B)50.
C)250.
D)150.

Question 20

The following table shows capacity requirements data for making Blodgetts. A load profile would show:

A)Load above capacity in periods 3 and 5.
B)Load below capacity in periods 1 and 3.
C)Load is exactly equal to capacity in period 5.
D)None of these.

Question 21

A master production schedule shows the beginning inventory is 100 units,the forecast is 250 units,and actual customer orders are 400 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?

A)150
B)250
C)300
D)400

Question 22

Which of the following would benefit the most from MRP?

A)Gasoline production.
B)Building of a new bridge.
C)Production of vacuum cleaners.
D)Production of aluminum soft drink cans.

Question 23

A detailed description of an "end item" along with a list of all of its raw materials,parts,and subassemblies is shown in a:

A)MPS.
B)Planning horizon.
C)BOM.
D)DRP.

Question 24

The following table shows capacity requirements data for making tabletops. Which of the following is TRUE?

A)Overtime is needed in day 1.
B)Capacity exactly meets demand in day 5.
C)All of the excess demand in days 4 and 5 can be shifted to day 3.
D)New machines are needed.

Question 25

Software that consolidates all of the business planning systems and data throughout an organization is:

A)MPS.
B)MRP.
C)DRP.
D)ERP.

Question 26

A master production schedule shows the beginning inventory is 200 units,the forecast is 600 units,and the actual customer orders is 500 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?

A)400
B)300
C)600
D)500

Question 27

Which of the following pieces of information is NOT contained in an MRP secondary report?

A)Cost.
B)Inventory levels.
C)Schedule attainment.
D)Planned order releases.

Question 28

A master production schedule shows the beginning inventory is 40 units,the forecast is 100 units,and actual customer orders are 80 units.What is the quantity that is available to promise in period 1?

A)40
B)80
C)100
D)60

Question 29

Advanced planning and scheduling systems:

A)Use a similar logic to the logic used in MRP.
B)Consolidate all business planning systems and data throughout an organization.
C)Integrate materials and capacity planning into one system.
D)All of these.

Question 30

All of the following are outputs from an MRP system EXCEPT:

A)Order releases.
B)Change orders.
C)Forecasts.
D)Exception reports.

Question 31

An MRP schedule is as follows.What are the net requirements in week 2?

A)0 units.
B)20 units.
C)30 units.
D)50 units.

Question 32

Which of the following is NOT an input to an MRP system?

A)Order releases.
B)Actual orders.
C)Inventory receipts.
D)Bill of materials.

Question 33

The entire time period covered by the MPS is the:

A)Time bucket.
B)Cumulative lead time.
C)Planning horizon.
D)Production schedule.

Question 34

Benefits of ERP systems include all of the following EXCEPT:

A)Easy implementation.
B)Fewer data entry errors.
C)More informed business decisions.
D)Improved customer service.

Question 35

The primary purpose of an MRP system is to:

A)Develop forecasts.
B)Plan transportation and deliveries.
C)Schedule personnel.
D)Match supply and demand.

Question 36

An MPS shows:

A)The change orders that are required.
B)The quantities of end items to be completed in each time period.
C)The number of each type of part that is needed to make the final product.
D)The scheduled releases for all parts and components.

Question 37

A master production schedule shows the beginning inventory is 50 units,the forecast is 80 units,and actual customer orders are 70 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?

A)30
B)80
C)70
D)20

Question 38

A master production schedule shows the beginning inventory is 50 units,the forecast is 200 units,and actual customer orders are 220 units.What is the quantity that is available to promise in period 1?

A)50
B)150
C)170
D)0

Question 39

A company has decided to outsource the production of key components for its main product to suppliers.What effect will this have on the product's bill of materials?

A)None.
B)The bill of materials will be wider.
C)The bill of materials will be deeper.
D)The bill of materials will be flatter.

Question 40

If the planning horizon is 12 weeks,the cumulative lead time must be:

A)Greater than 12 weeks.
B)Exactly equal to 12 weeks.
C)Greater than six weeks.
D)Less than or equal to 12 weeks.

Question 41

The planned order releases in week 5 are 10 units.Each unit must be processed for five minutes at the workstation.If the available capacity at the workstation is one hour:

A)Overtime will be needed.
B)Delivery lead times should be increased.
C)The workstation is underloaded.
D)An order backlog will be created.

Question 42

Demand-driven MRP:

A)Compares materials and capacity requirements within a single firm.
B)Extends planning across the supply chain.
C)Focuses on distribution planning.
D)Is also called advanced planning and scheduling.

Question 43

Distribution requirements planning:

A)Uses logic that starts at the manufacturing plant and works forward toward the customer.
B)Includes only firm orders in its calculations.
C)Uses logic similar to MRP,beginning at the point closest to the customer.
D)Is normally not included as a module in ERP software.

Question 44

The available capacity of a worker,machine,work center,or facility during a specific period of time is compared against the capacity needed for a specific work schedule in a:

A)Load profile.
B)Capacity profile.
C)Infinite load.
D)DRP.