Exam 13: Material Requirements Planning Mrp and Erp

A working MRP system allows a firm to react to even minor changes in production requirements. Discuss both the advantage and disadvantage of having such ability.

If a load report (resource requirements profile) shows a work center scheduled beyond capacity:

What strategically alters lead times and precisely places safety stock within the BOM structure to improve MRP performance?

________ software replaces paper-based transaction records with digital-based records to reduce the complexity of tracking documentation.

Which of the following statements is TRUE regarding the master production schedule?

Jacquie Welkener, operations manager for ABC Technologies, must schedule work for the next five days. Each unit takes 40 minutes to process. Available capacity is 8 hours per day. The production order quantities are 10, 16, 8, 8, and 18 for Monday through Friday, respectively. What should be the production plan?

Consider the bill of material for Product J and the data given in the following table. The gross requirements for J are 200 units in week 6 and 250 units in week 8. Develop the MRP tables for each item for an 8-week planning period. Use the lot-for-lot lot-sizing rule.

The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and setup cost is large compared to holding cost.

What is DRP?

An order has been placed for 50 units of Product A and 60 units of Product B. There are currently 35 units of Product B on hand. Each A requires 2 units of Part C; each B requires 5 units of C. There are 160 units of C available. (a) Calculate the net requirements for B. (b) Calculate the gross requirements for C. (c) Calculate the net requirements for C.

________ is a system that allows, with MRP in place, inventory data to be augmented by other resource variables.

Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique?

MRP is an excellent tool for scheduling components with variable lead times.