Question 1

Demand-driven MRP:

Accepted Answer

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 2

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:

Accepted Answer

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

Question 3

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

Accepted Answer

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 4

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

Accepted Answer

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

Question 5

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?

Accepted Answer

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

Question 6

Benefits of ERP systems include all of the following EXCEPT:

Accepted Answer

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

Question 7

Capacity requirements planning does all of the following EXCEPT:

Accepted Answer

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 8

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

Accepted Answer

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

Question 9

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:

Accepted Answer

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 10

An MPS shows:

Accepted Answer

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 11

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:

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

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?

Accepted Answer

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

Question 15

The entire time period covered by the MPS is the:

Accepted Answer

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

Question 16

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?

Accepted Answer

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

Question 17

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?

Accepted Answer

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 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

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

Exam 12: Demand Planning: Forecasting and Demand Management