Deck 13: Managing Production Across the Supply Chain

Question 1

Throughout every MRP record,ending inventory is equal to the ending inventory from the previous period,plus the master production schedule quantity,minus the orders booked for that period.

Answer 1

False

Question 2

A unit that is not been sold or otherwise committed to any other customer should be considered available to promise.

Answer 2

True

Question 3

From a revenue standpoint,a producer would rather have higher forecasted demand than booked orders.

Answer 3

False

Question 4

Available to promise inventory is always zero for the first week in the master schedule record.

Question 5

Material requirements planning is used to manage independent demand inventory.

Question 6

Consider the product structure tree shown below:
Company B has no inventory at any level.They will need 145 Es to make 12 units of end item X.

Question 7

MRP nervousness refers to the notion that a small change at the top of a bill of material can have drastic effects on items farther down the bill of material.

Question 8

If a job has a negative critical ratio then it must be early.

Question 9

MRP uses backward scheduling.

Question 10

Distribution requirements planning is identical to material requirements planning except instead of gross requirements,a DRP record shows forecasted demand.

Question 11

Since the booked orders figure represents actual customer demand in a master schedule,that value is always less than or equal to forecasted demand.

Question 12

Component J is ordered on February 1,is received,and is ready to use on February 8.Its planning lead time is seven days.

Question 13

Distribution requirements planning is used to synchronize supply chain partners at the production activity control level.

Question 14

The longer the production and supplier lead times,the longer the MRP record's planning horizon needs to be.

Question 15

In a bill of material,a parent may have many children but a child may have only one parent.

Question 16

Gross requirements in an MRP record can be met by inventory from previous weeks,scheduled receipts,or planned receipts.

Question 17

Which of the following statements regarding master production scheduling calculations is BEST?

A)Forecasted demand always exceeds booked orders.
B)Booked orders always exceed forecasted demand.
C)If booked orders are greater than forecasted orders,there must be a master production schedule for that period.
D)If ending inventory is greater than or equal to zero,there is no master production schedule quantity for that period.

Question 18

RFID tags can be used instead of a bar code system to trace the movement and location of materials.

Question 19

Which step comes first in sales and operations planning?

A)master scheduling
B)material requirements planning
C)production activity control
D)vendor order management

Question 20

Material requirements planning is performed over a shorter time frame and greater level of detail than master scheduling.

Question 21

The planning technique that uses the master production schedule to monitor key resource requirements is:

A)rough-cut capacity planning.
B)horizon planning.
C)resource planning.
D)handfield planning.

Question 22

A time-phased planning approach that uses planned orders at the point of demand to determine forecasted demand at the source level is:

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

Question 23

Forecasts in a company using a distribution requirements planning system are typically based on:

A)historical data from upstream supply partners.
B)historical data from downstream supply partners.
C)upstream supply partners' requirements.
D)downstream supply partners' requirements.

Question 24

MRP is NOT capable of:

A)lowering inventory levels.
B)helping a firm meet their master schedule commitments.
C)telling a firm's suppliers what needs to be made and by when.
D)sequencing jobs at a machining center.

Question 25

Calculate the average lateness using the earliest due date criterion to determine the schedule for these five jobs.

A)3
B)10
C)12.4
D)14

Question 26

Using this MRP record and a lead time of 3 weeks,what should the planned orders be in week 1?

A)200
B)300
C)400
D)500

Question 27

There are 200 units in inventory at the start of week 1.What are the net requirements in week 4 if there is a scheduled receipt of 100 units every other week and a two week production lead time?

A)250
B)300
C)350
D)400

Question 28

Given the forecast and booked orders shown in the table,and a beginning inventory of 25,what is the master production schedule quantity for period 4?

A)35
B)40
C)55
D)70

Question 29

________ translates the master schedule for final products into detailed requirements.

Question 30

Confirmed demand for products is called ________ in master scheduling.

Question 31

Consider the product structure tree shown below:
With a beginning inventory of zero for all components and finished items,how many assembly As are needed to produce 25 product Xs?

A)125
B)250
C)325
D)400

Question 32

With an inventory as shown in the table,how many assembly Es should be produced or purchased to produce 15 product Xs?

A)91
B)147
C)193
D)225

Question 33

An MRP system cannot answer the question:

A)"how much?"
B)"when?"
C)"what?"
D)"why?"

Question 34

Using the information in the table,determine a schedule for these five jobs using the critical ratio sequence.

A)C-D-B-E-A
B)A-C-E-B-D
C)C-A-E-B-D
D)A-D-B-E-C

Question 35

Given the forecast and booked orders shown in the table,and a beginning inventory of 0,what is the available to promise inventory for the period 3? There are no LOT quantity constraints.

A)0
B)12
C)24
D)36

Question 36

Consider the product structure tree shown below:
With a beginning inventory of zero for all components and finished items,how many assembly Es are needed to produce 20 product Xs?

A)180
B)220
C)260
D)300

Question 37

Which of these actions would tend to make an MRP system less nervous?

A)using the same component,such as a fastener,at multiple levels throughout the product structure tree
B)eliminating lot size requirements wherever possible
C)increasing the number of levels in a product structure tree
D)increasing the minimum order quantities only at the highest level of a bill or materials

Question 38

If a manufacturer had no inventory of any kind but had orders for 10 finished units of their sole product,their buyer would know what parts to order if they were supplied with a:

A)backward schedule.
B)bill of material.
C)rough-cut capacity plan.
D)planning horizon order sheet.

Question 39

Given the forecast and booked orders shown in the table,and a beginning inventory of 20,what is the available to promise inventory for the first period? There are no LOT quantity constraints.

A)0
B)10
C)20
D)40

Question 40

There is no beginning inventory.What are the net requirements in week 4 if there is a scheduled receipt of 100 units each week and a two week production lead time?

A)250
B)300
C)350
D)400

Question 41

What are three advantages of using an MRP system?

Question 42

Consider the product structure tree shown below:
Assume that the company using this product structure tree has 5 items each at the 0 level,10 items each at the 1 level and 20 items each at the 2 level.How many units of A,B,and E will the company need to acquire in order to ship an order of 20 X's?

Question 43

The estimated level of an end item at the end of each planning period,whether the period is a week or a month is the ________.

Question 44

The table shows a master schedule for end item Z that is produced according to the product structure tree shown below.Beginning inventories and lead times for components of Z are given in the table.The lot sizes for A,B,and C are 100 units.Complete a materials requirement plan for components A,B,and C.

Question 45

In material requirements planning,units already on order are referred to as ________ receipts and new orders are termed ________ receipts.

Question 46

Describe the scope,inputs,and outputs of sales and operations planning,master scheduling,and MRP.

Question 47

The process of ________ occurs when a planner works backwards from the master production schedule and the product structure tree to determine when all parts and subassemblies must be ordered and assembled in order to meet MPS due dates.

Question 48

The longer the production and supplier lead times,the ________ the MRP record's ________ should be.

Question 49

Cow Company used the master schedule to determine how many workers and the number of machine hours would be needed for each production period.This approach is known as ________.

Question 50

There are six jobs that are awaiting processing at a machining center.The jobs are shown in the table with their processing time and scheduled completion time.Schedule the jobs by earliest due date,shortest processing time and the critical ratio rule and calculate average lateness for all the jobs.Which scheduling technique performs BEST?

Question 51

Explain in layman's terms all of the information that is provided by a master schedule.

Question 52

A(n)________ is a record or graphical rendering that shows how all the subassemblies,intermediates,parts and raw materials are put together to make the Level 0 item.

Question 53

A manufacturing concern enters the new year with a forecast and customer orders as shown in the table.They have a beginning inventory of 25 units and a batch size of 25 units (all MPS quantities must be in multiples of 25).Complete the rest of the master production schedule by filling in the projected ending inventory,master production schedule quantity,and available to promise rows

Question 54

________ is a tool that can be used to synchronize supply chain partners at the master production schedule level.

Question 55

What organizational disciplines are required in order for an organization to successfully run a material requirements planning system?

Question 56

For a given job,the amount of processing time remaining divided by the amount of time until the job is due is its ________.