Question 1

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

Question 2

When implemented correctly, MRP links all areas of the business.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance set-up cost and carrying cost.

Accepted Answer

A) True 
 B)False

Question 5

MRP systems seek to achieve which of the following?

Accepted Answer

A) Minimize lot sizes 
B) Determine the number of dependent demand items needed 
C) Relieve capacity bottlenecks 
D) Provide a yardstick for future improvements 
E) Improve on JIT methods 
A) Minimize lot sizes 
B) Determine the number of dependent demand items needed 
C) Relieve capacity bottlenecks 
D) Provide a yardstick for future improvements 
E) Improve on JIT methods

Question 6

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Accepted Answer

A) True 
 B)False

Question 7

Since MRP systems focus on batch or lot-sized orders and JIT is focused on individual item production, the two systems are incompatible and cannot work together.

Accepted Answer

A) True 
 B)False

Question 8

The master production schedule states the number of items to be produced during specific time periods.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) Bill of materials (BOM) file 
B) Inventory records file 
C) Exception reports 
D) Planned-order schedules 
E) None of the above 
A) Bill of materials (BOM) file 
B) Inventory records file 
C) Exception reports 
D) Planned-order schedules 
E) None of the above

Question 10

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

Accepted Answer

A) True 
 B)False

Question 11

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

Accepted Answer

A) True 
 B)False

Question 12

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 13

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an input file necessary to run an MRP system?

Accepted Answer

A) Bill of materials (BOM) file 
B) Quality management report 
C) Exception reports 
D) Planned-order schedules 
E) Purchasing contracts 
A) Bill of materials (BOM) file 
B) Quality management report 
C) Exception reports 
D) Planned-order schedules 
E) Purchasing contracts

Question 15

"Projected available balance" is a term referring to unsold finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 16

A BOM file is also called which of the following?

Accepted Answer

A) Product structure tree 
B) Stocking plan 
C) Inventory usage record 
D) Production parts plan 
E) Time bucket schedule 
A) Product structure tree 
B) Stocking plan 
C) Inventory usage record 
D) Production parts plan 
E) Time bucket schedule

Question 17

Which of the following is not a production activity report generated by MRP?

Accepted Answer

A) Exception report 
B) Planning report 
C) Performance control report 
D) Planned-order schedules 
E) Bill of materials report 
A) Exception report 
B) Planning report 
C) Performance control report 
D) Planned-order schedules 
E) Bill of materials report

Question 18

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

Accepted Answer

A) Fabricate-to-stock 
B) Fabricate-to-order 
C) Assemble-to-stock 
D) Continuous process 
E) Service and repair parts 
A) Fabricate-to-stock 
B) Fabricate-to-order 
C) Assemble-to-stock 
D) Continuous process 
E) Service and repair parts

Question 19

A modular bill of materials includes items with fractional options.

Accepted Answer

A) True 
 B)False

Question 20

In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

Accepted Answer

A) True 
 B)False

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

When implemented correctly, MRP links all areas of the business.

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

The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance set-up cost and carrying cost.

MRP systems seek to achieve which of the following?

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Since MRP systems focus on batch or lot-sized orders and JIT is focused on individual item production, the two systems are incompatible and cannot work together.

The master production schedule states the number of items to be produced during specific time periods.

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

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

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

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Which of the following is an input file necessary to run an MRP system?

"Projected available balance" is a term referring to unsold finished goods inventory.

A BOM file is also called which of the following?

Which of the following is not a production activity report generated by MRP?

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

A modular bill of materials includes items with fractional options.

In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

Operations and Supply Chain Management

Strategy and Sustainability

Product and Service Design

Strategic Capacity Management

Process Analysis

Production Processes

Service Processes

Health Care Processes

Six-Sigma Quality

Projects

Global Sourcing and Procurement

Location, Logistics and Distribution

Lean and Sustainable Supply Chains

Enterprise Resource Planning Systems

Demand Management and Forecasting

Sales and Operations Planning

Inventory Control

Scheduling

Constraint Management

Filters

Exam 18: Material Requirements Planning

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

When implemented correctly, MRP links all areas of the business.

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

The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance set-up cost and carrying cost.

MRP systems seek to achieve which of the following?

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Since MRP systems focus on batch or lot-sized orders and JIT is focused on individual item production, the two systems are incompatible and cannot work together.

The master production schedule states the number of items to be produced during specific time periods.

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

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

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

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Which of the following is an input file necessary to run an MRP system?

"Projected available balance" is a term referring to unsold finished goods inventory.

A BOM file is also called which of the following?

Which of the following is not a production activity report generated by MRP?

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

A modular bill of materials includes items with fractional options.

In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

Operations and Supply Chain Management

Strategy and Sustainability

Product and Service Design

Strategic Capacity Management

Process Analysis

Production Processes

Service Processes

Health Care Processes

Six-Sigma Quality

Projects

Global Sourcing and Procurement

Location, Logistics and Distribution

Lean and Sustainable Supply Chains

Enterprise Resource Planning Systems

Demand Management and Forecasting

Sales and Operations Planning

Inventory Control

Scheduling

Constraint Management

Filters