Deck 16: Materials Requirements Planning and ERP

Question 1

An MRP system is designed to cope with the following type of demand:

A)Lumpy
B)Constant
C)Uncertain
D)Random

Answer 1

A

Question 2

Which system specifies the output of the operations function?

A)Parts explosion
B)Bill of materials
C)Master scheduling
D)Capacity planning
E)None of the above

Answer 2

C

Question 3

Forecasting demand in MRP Systems is based on the past demand patterns recorded from previous transactions.

Answer 3

False

Question 4

Which of the following most closely describes net material requirements?

A)Gross requirements - planned receipts
B)Gross requirements - (on-hand + scheduled receipts)
C)Gross requirements - on-hand + scheduled receipts
D)Gross requirements - on-hand
E)Gross requirements - planned order releases

Question 5

The parts explosion results in the following outputs:

A)Purchase orders
B)Purchase orders and bill of materials
C)Purchase orders and shop orders
D)Shop orders and inventory orders

Question 6

A requirements-based system derives orders from:

A)Customer requests
B)Forecast
C)Bill of materials
D)Master schedule

Question 7

Successful MRP implementation requires:

A)Management support,parts explosion,and adequate computer support
B)Marketing support,master schedule,and bill of materials
C)Management support,accurate data,and adequate computer support
D)None of the above

Question 8

A replenishment-based system derives orders from:

A)Capacity available
B)Forecast or customer request
C)Bill of materials
D)Master schedule

Question 9

The three inputs for every MRP parts explosion are:

A)Inventory,master schedule,and bill of materials
B)Forecast,inventory,and bill of materials
C)Capacity,master schedule,and inventory
D)Forecast,bill of materials,and master schedule

Question 10

In MRP "scheduled receipts" are:

A)Identical to "planned order receipts"
B)Identical to "planned order releases"
C)Identical to "net requirements"
D)Open orders not delivered yet
E)None of the above

Question 11

A Type II MRP system:

A)Only launches orders
B)Has feedback to control capacity
C)Includes planning for personnel and capital
D)Is also known as an Enterprise Resource Planning System
E)None of the above

Question 12

Which of the following is true about MRP Systems?

A)Forecast is based on past demand
B)Lot sizing is EOQ
C)Demand pattern is random
D)Objective is to meet manufacturing needs
E)Order philosophy is replenishment

Question 13

Cycle counting:

A)Is counting a fraction of inventory each day
B)Does not eliminate the need for annual physical inventory
C)Is a way to plan inventory on a cyclic basis
D)Is a way to decide how much to order

Question 14

An inflated master production schedule:

A)Is needed to provide safety stock in MRP
B)Will help meet marketing needs
C)Helps cover up production problems
D)Results in excess inventories and wrong priorities

Question 15

Bills of materials are kept current with changes using:

A)Master scheduling systems
B)Engineering change order systems
C)Inventory tracking systems
D)Capacity planning systems
E)Manufacturing execution systems

Question 16

The bill of materials:

A)Shows how much inventory is available
B)Is a bill sent to the customer for material ordered
C)Is a list of all materials required to produce a part
D)None of the above

Question 17

Planned lead times:

A)Usually are longer than actual working times
B)Usually reflect the actual working times
C)Usually are smaller than the actual working times
D)Consider interference from other jobs
E)Two of the above

Question 18

Which of the following is NOT a way of handling uncertainty when operating an MRP system?

A)Safety stock
B)Safety lead-time
C)Safety capacity
D)Back-up suppliers

Question 19

Which type of MRP system is used as an information system to plan and control inventories and capacities?

A)Type I
B)Type II
C)ERP
D)None of the above

Question 20

The gross requirements of a given component part in a MRP system are determined from:

A)Net requirements + on-hand
B)Net requirements of end item
C)Gross requirements of the immediate part
D)Planned order releases of the end item
E)Planned order releases of the immediate parent item

Question 21

MRP is a type of pull system.

Question 22

The master schedule is prepared for product families.

Question 23

The master schedule should be frozen inside the production lead-time.

Question 24

MRP systems work better in a line flow system compared to a job shop.

Question 25

Compare and contrast MRP systems and Order Point systems of managing inventories.When do you prefer MRP systems to Order Point Systems? Can MRP systems be used while managing capacity in a factory? Provide sufficient justification for your answer.

Question 26

When a company uses an ERP system,the different functional areas of the business will share a common database.

Question 27

The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems.

Question 28

In MRP systems,inventories are managed according to their dollar usage values (i.e.,high dollar usage inventories are carefully managed when compared to low dollar usage inventories).

Question 29

Order launching MRP systems are also known as Type II MRP systems.

Question 30

A bill of materials is usually replaced by a bill of labor if MRP systems are to be used in service industries.