Question 1

A master production schedule is an input to a material requirements planning (MRP) system.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is an input to the master production schedule?

Accepted Answer

A)  Prototype products from product development 
B)  Aggregate component schedule 
C)  Peg reports 
D)  Exception reports 
E)  Forecasts of demand from customers 
A)  Prototype products from product development 
B)  Aggregate component schedule 
C)  Peg reports 
D)  Exception reports 
E)  Forecasts of demand from customers E

Question 3

The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

Accepted Answer

A) True 
 B)False  False

Question 4

MRP stands for manufacturing requirements planning.

Accepted Answer

A) True 
 B)False

Question 5

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

Accepted Answer

A)  Kanban 
B)  Just-in-time system 
C)  MRP 
D)  Least unit cost 
E)  Least total cost 
A)  Kanban 
B)  Just-in-time system 
C)  MRP 
D)  Least unit cost 
E)  Least total cost

Question 7

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

Accepted Answer

A) True 
 B)False

Question 8

Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.

Accepted Answer

A) True 
 B)False

Question 9

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

Accepted Answer

A) True 
 B)False

Question 10

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-for-lot method for order quantities for all items. What is the low level code (LLC) for B and C?

Accepted Answer

A)  LLC for B is 2 and C is 1 
B)  LLC for both B and C are 2 
C)  LLC for B is 1 and C is 2 
D)  LLC for B is 0 and C is 1 
E)  LLC for all items are 1 
A)  LLC for B is 2 and C is 1 
B)  LLC for both B and C are 2 
C)  LLC for B is 1 and C is 2 
D)  LLC for B is 0 and C is 1 
E)  LLC for all items are 1

Question 11

The customer grace period is a time-span having some specified level of opportunity for the customer to make changes.

Accepted Answer

A) True 
 B)False

Question 12

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. Initial inventory values for A is 100, B is 200 and C is 0. Use lot-for-lot method for order quantities for all items. If gross requirement for A is 800 in period 9, what will be the planned order release for B in period 5?

Accepted Answer

A)  1,600 
B)  1,400 
C)  700 
D)  800 
E)  1,200 
A)  1,600 
B)  1,400 
C)  700 
D)  800 
E)  1,200

Question 13

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

Accepted Answer

A) True 
 B)False

Question 14

The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

A) True 
 B)False

Question 15

If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?

Accepted Answer

A)  350 
B)  247 
C)  23 
D)  185 
E)  78 
A)  350 
B)  247 
C)  23 
D)  185 
E)  78

Question 16

Which of the following is most closely related to the reason a firm might implement MRP?

Accepted Answer

A)  So they can order the right parts 
B)  So they can order parts sufficient for immediate use 
C)  So they can insure that parts to arrive prior to when they are needed 
D)  To assure appropriate quality levels 
E)  To keep process costs between the LCL and the UCL 
A)  So they can order the right parts 
B)  So they can order parts sufficient for immediate use 
C)  So they can insure that parts to arrive prior to when they are needed 
D)  To assure appropriate quality levels 
E)  To keep process costs between the LCL and the UCL

Question 17

Which of the following industry types have high expected benefits from the application of MRP?

Accepted Answer

A)  Fabricate-to-order 
B)  Hospitals 
C)  Assemble-to-order 
D)  Aircraft manufacturers 
E)  Oil refineries 
A)  Fabricate-to-order 
B)  Hospitals 
C)  Assemble-to-order 
D)  Aircraft manufacturers 
E)  Oil refineries

Question 18

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-for-lot method for order quantities for all items. If gross requirement for A is 500 in period 8, what will be the planned order release for B in period 4?

Accepted Answer

A)  0 
B)  1,000 
C)  500 
D)  1,500 
E)  6,500 
A)  0 
B)  1,000 
C)  500 
D)  1,500 
E)  6,500

Question 19

Which of the following is considered a primary report in an MRP system?

Accepted Answer

A)  Planning reports 
B)  Performance reports 
C)  Exception reports 
D)  Planned order schedules 
E)  Cycle counting reports 
A)  Planning reports 
B)  Performance reports 
C)  Exception reports 
D)  Planned order schedules 
E)  Cycle counting reports

Question 20

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

Accepted Answer

A) True 
 B)False

A master production schedule is an input to a material requirements planning (MRP) system.

Which of the following is an input to the master production schedule?

The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

MRP stands for manufacturing requirements planning.

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-for-lot method for order quantities for all items. What is the low level code (LLC) for B and C?

The customer grace period is a time-span having some specified level of opportunity for the customer to make changes.

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?

Which of the following is most closely related to the reason a firm might implement MRP?

Which of the following industry types have high expected benefits from the application of MRP?

Which of the following is considered a primary report in an MRP system?

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

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Exam 9: Material Requirements Planning

A master production schedule is an input to a material requirements planning (MRP) system.

Which of the following is an input to the master production schedule?

The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

MRP stands for manufacturing requirements planning.

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-for-lot method for order quantities for all items. What is the low level code (LLC) for B and C?

The customer grace period is a time-span having some specified level of opportunity for the customer to make changes.

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?

Which of the following is most closely related to the reason a firm might implement MRP?

Which of the following industry types have high expected benefits from the application of MRP?

Which of the following is considered a primary report in an MRP system?

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Sales and Operations Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters