Question 1

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

Accepted Answer

A)  Planned-order schedule 
B)  Exceptions reports 
C)  Inventory record 
D)  Firm orders from known customers 
E)  Engineering change reports 
A)  Planned-order schedule 
B)  Exceptions reports 
C)  Inventory record 
D)  Firm orders from known customers 
E)  Engineering change reports

Question 2

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 3

In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

Accepted Answer

A) True 
 B)False

Question 4

The time-phased plan specifying how many and when the firm plans to build each end item is called the materials requirements plan (MRP).

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

Low-level coding in MRP indicates the exact status of each item managed by the system in "real time."

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

This industry type includes industries such as foundries, rubber and plastics, specialty paper, chemicals, paint, drug, and food processors.

Accepted Answer

A)  Process 
B)  Make-to-stock 
C)  Assemble-to-order 
D)  Make-to-order 
E)  Engineer-to-order 
A)  Process 
B)  Make-to-stock 
C)  Assemble-to-order 
D)  Make-to-order 
E)  Engineer-to-order

Question 9

MRP stands for Material Requirements Planning.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200, and planned receipts are 800?

Accepted Answer

A)  7,000 
B)  4,200 
C)  3,000 
D)  2,000 
E)  1,200 
A)  7,000 
B)  4,200 
C)  3,000 
D)  2,000 
E)  1,200

Question 11

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 these choices are correct 
A)  Bill-of-materials (BOM) file 
B)  Inventory records file 
C)  Exception reports 
D)  Planned-order schedules 
E)  None of these choices are correct

Question 12

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 13

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 14

An input to the material requirements planning (MRP) system is an inventory records file.

Accepted Answer

A) True 
 B)False

Question 15

A super bill can specify that a fraction of a part, say 25 percent, is used.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

Accepted Answer

A) True 
 B)False

Question 18

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 in which these are most nearly equal?

Accepted Answer

A)  Economic order quantity 
B)  Lot-for-lot 
C)  Least total cost 
D)  Least unit cost 
E)  ABC analysis 
A)  Economic order quantity 
B)  Lot-for-lot 
C)  Least total cost 
D)  Least unit cost 
E)  ABC analysis

Question 19

Net change MRP systems are "activity" driven.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 21: Material Requirements Planning

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

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

In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

The time-phased plan specifying how many and when the firm plans to build each end item is called the materials requirements plan (MRP).

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.

Low-level coding in MRP indicates the exact status of each item managed by the system in "real time."

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

This industry type includes industries such as foundries, rubber and plastics, specialty paper, chemicals, paint, drug, and food processors.

MRP stands for Material Requirements Planning.

Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200, and planned receipts are 800?

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

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.

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

An input to the material requirements planning (MRP) system is an inventory records file.

A super bill can specify that a fraction of a part, say 25 percent, is used.

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

MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

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 in which these are most nearly equal?

Net change MRP systems are "activity" driven.

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

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