Exam 21: Material Requirements Planning

Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?

If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size?

In a typical inventory status record, which of the following would you not expect to see?

In this industry type, a final assembly is made from standard options that the customer chooses.

Generally, determining lot sizes in MRP systems is simple.

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

One of the main purposes of an MRP system is which of the following?

We would expect to see which of the following in an MRP system's inventory status file?

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.

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

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

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

Which of the following is not a direct input to the material planning?

A lot-for-lot (L4L) lot-sizing technique does not take into account setup costs or capacity limitations.

Which of the following is a dynamic lot-sizing technique that 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?

Time fences are periods of time having some specified level of opportunity for the customer to make changes.

Under the lot-for-lot (L4L) lot-sizing technique as used in MRP, we would expect which of the following?

Net change MRP reflects the exact status of each item managed by the system in "real time."

Lot-for-lot (L4L) is the most common lot-sizing technique.

The least unit cost method (LUC) 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.