Exam 21: Material Requirements Planning

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.

Which of the following can be used for lot sizing in an MRP system?

In this industry type, items are manufactured by machine rather than assembled from parts. These are standard stock items carried in anticipation of customer demand.

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

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 the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?

In an MRP program, the program accesses the status segment of an inventory record according to specific periods called which of the following?

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-4-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?

An output of MRP is a bill of materials (BOM) file.

In this industry type, Iitems are fabricated or assembled completely to customer specification.

Which of the following industry types will not benefit greatly from the application of MRP?

The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.

The lot-for-lot (L4L) lot-sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become "lumpy."

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 value for A is 100, B is 200, and C is 0. Use lot-4-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?

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 most closely related to the reason a firm might implement MRP?

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

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