Question 1

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 2

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

Accepted Answer

A)  1,000 
B)  950 
C)  500 
D)  400 
E)  350 
A)  1,000 
B)  950 
C)  500 
D)  400 
E)  350

Question 3

MRP is based on dependent demand.

Accepted Answer

A) True 
 B)False

Question 4

The least unit cost method of lot-sizing adds ordering, stock-out, and inventory carrying costs 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 5

A modular bill-of-materials includes items with fractional options.

Accepted Answer

A) True 
 B)False

Question 6

In a net change MRP system, requirements and schedules are considered rigid and never updated.

Accepted Answer

A) True 
 B)False

Question 7

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. 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 is 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 is 1. 
A)  LLC for B is 2 and C is 1. 
B)  LLC for both B and C is 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 is 1.

Question 8

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 9

Which of the following is not a lot-sizing technique used in MRP systems?

Accepted Answer

A)  Lot-for-lot (L4L) 
B)  Economic order quantity (EOQ) 
C)  Least total cost (LT
C)  
D)  Least unit cost (LU
C)  
E)  Warehouse loading factor (WLF) 
A)  Lot-for-lot (L4L) 
B)  Economic order quantity (EOQ) 
C)  Least total cost (LT
C)  
D)  Least unit cost (LU
C)  
E)  Warehouse loading factor (WLF)

Question 10

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 11

The three main inputs to an MRP system are the bill-of-materials, the master schedule, and the inventory records file.

Accepted Answer

A) True 
 B)False

Question 12

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 13

A product tree can do which of the following?

Accepted Answer

A)  Help to compute component usage. 
B)  Reduce product scrap. 
C)  Reduce labor overtime. 
D)  Reduce regular time labor. 
E)  Locate raw material supplies. 
A)  Help to compute component usage. 
B)  Reduce product scrap. 
C)  Reduce labor overtime. 
D)  Reduce regular time labor. 
E)  Locate raw material supplies.

Question 14

In this industry type, items are manufactured by machine to customer order. These are generally industrial orders.

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 15

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

Accepted Answer

A)  Planned-order schedule 
B)  Peg report 
C)  Planning report 
D)  Inventory accuracy report 
E)  Aggregate production plan report 
A)  Planned-order schedule 
B)  Peg report 
C)  Planning report 
D)  Inventory accuracy report 
E)  Aggregate production plan report

Question 16

The master production schedule deals exclusively with dependent demand items.

Accepted Answer

A) True 
 B)False

Question 17

A BOM file is also called which of the following?

Accepted Answer

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

Question 18

This industry type combines multiple component parts into a finished product, which is then stocked in inventory to satisfy customer demand.

Accepted Answer

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

Question 19

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 20

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

Exam 21: Material Requirements Planning

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

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

MRP is based on dependent demand.

The least unit cost method of lot-sizing adds ordering, stock-out, and inventory carrying costs 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 modular bill-of-materials includes items with fractional options.

In a net change MRP system, requirements and schedules are considered rigid and never updated.

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. What is the low level code (LLC) for B and C?

MRP systems seek to achieve which of the following?

Which of the following is not a lot-sizing technique used in MRP systems?

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

The three main inputs to an MRP system are the bill-of-materials, the master schedule, and the inventory records file.

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

A product tree can do which of the following?

In this industry type, items are manufactured by machine to customer order. These are generally industrial orders.

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

The master production schedule deals exclusively with dependent demand items.

A BOM file is also called which of the following?

This industry type combines multiple component parts into a finished product, which is then stocked in inventory to satisfy customer demand.

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

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

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