Question 1

A bill of material must be updated with the corrected dimensions of a part. The document that details this change is a(n)

Accepted Answer

A)  modular bill 
B)  engineering change notice 
C)  resource requirements profile 
D)  lead time-offset product structure document 
E)  planning bill 
A)  modular bill 
B)  engineering change notice 
C)  resource requirements profile 
D)  lead time-offset product structure document 
E)  planning bill B

Question 2

The Wagner-Whitin algorithm is the most widely used MRP lot-sizing technique.

Accepted Answer

A) True 
 B)False  False

Question 3

In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket

Accepted Answer

A)  signals the need to purchase that end item in that period 
B)  implies that value was scheduled by the MPS 
C)  signals the need for a negative planned order receipt in that period 
D)  is impossible 
E)  All of the above are true. 
A)  signals the need to purchase that end item in that period 
B)  implies that value was scheduled by the MPS 
C)  signals the need for a negative planned order receipt in that period 
D)  is impossible 
E)  All of the above are true. D

Question 4

All of the following are advantages of enterprise resource planning (ERP) except it

Accepted Answer

A)  creates commonality of databases 
B)  increases communications and collaboration worldwide 
C)  helps integrate multiple sites and business units 
D)  requires major changes in the company and its processes to implement 
E)  can provide a strategic advantage over competitors 
A)  creates commonality of databases 
B)  increases communications and collaboration worldwide 
C)  helps integrate multiple sites and business units 
D)  requires major changes in the company and its processes to implement 
E)  can provide a strategic advantage over competitors

Question 5

Distribution resource planning (DRP) is

Accepted Answer

A)  a transportation plan to ship materials to warehouses 
B)  a time-phased stock replenishment plan for all levels of a distribution network 
C)  a shipping plan from a central warehouse to retail warehouses 
D)  material requirements planning with feedback loop from distribution centers 
E)  a material requirements planning package used exclusively by warehouses 
A)  a transportation plan to ship materials to warehouses 
B)  a time-phased stock replenishment plan for all levels of a distribution network 
C)  a shipping plan from a central warehouse to retail warehouses 
D)  material requirements planning with feedback loop from distribution centers 
E)  a material requirements planning package used exclusively by warehouses

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Linking a part requirement with the parent component that caused the requirement is referred to as

Accepted Answer

A)  net requirements planning 
B)  a time fence 
C)  pegging 
D)  kanban 
E)  leveling 
A)  net requirements planning 
B)  a time fence 
C)  pegging 
D)  kanban 
E)  leveling

Question 8

Construct an indented bill of material for a common 3-ring view binder (the kind that lets you slip your own cover sheet into the front panel and spine). Assume the rings to be 1 inch diameter. Don't worry about other dimensions?
pay attention to accounting for all of the parts.

Accepted Answer

Not all such binders are identical, and

Question 9

It is week 1 and there are currently 20 As in stock. The MPS calls for 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week when and how large of an order should be placed to meet the requirement of 300 As?

Accepted Answer

A)  Week 1, 300 A s 
B)  Week 1, 40 A s 
C)  Week 5, 40 A s 
D)  Week 4, 40 A s 
E)  Week 4, 300 A s 
A)  Week 1, 300 A s 
B)  Week 1, 40 A s 
C)  Week 5, 40 A s 
D)  Week 4, 40 A s 
E)  Week 4, 300 A s

Question 10

Given the following bill of material  
If the demand for product A is 50 units, what will be the gross requirement for component E?

Accepted Answer

A)  4 
B)  100 
C)  200 
D)  250 
E)  300 
A)  4 
B)  100 
C)  200 
D)  250 
E)  300

Question 11

Explain what is meant by "nervousness" of the MRP schedule. Provide an example. Name two tools that are particularly useful in reducing system nervousness in MRP systems.

Accepted Answer

Nervousness is the reaction to a large n

Question 12

The aggregate plan gets input or feedback from which of the following areas?

Accepted Answer

A)  engineering 
B)  finance, marketing, and human resources 
C)  the master production schedule 
D)  procurement, production, and general management 
E)  all of the above 
A)  engineering 
B)  finance, marketing, and human resources 
C)  the master production schedule 
D)  procurement, production, and general management 
E)  all of the above

Question 13

DRP is a time-phased stock-replenishment plan for all levels of a distribution network.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

The advantages are it allows the firm to

Question 15

Which of the following statements regarding lot-sizing is true?

Accepted Answer

A)  EOQ principles should be followed whenever economical. 
B)  Too much concern with lot-sizing results in False accuracy. 
C)  Lot-for-lot cannot be modified for scrap allowance or process constraints. 
D)  The Wagner-Whitin algorithm simplifies lot size calculations. 
E)  All of the above are true. 
A)  EOQ principles should be followed whenever economical. 
B)  Too much concern with lot-sizing results in False accuracy. 
C)  Lot-for-lot cannot be modified for scrap allowance or process constraints. 
D)  The Wagner-Whitin algorithm simplifies lot size calculations. 
E)  All of the above are true.

Question 16

The Aggregate Plan, derived from the Master Production Schedule, specifies in more detail how much of which products is to be made at what times.

Accepted Answer

A) True 
 B)False

Question 17

Consider the following requirements for a certain product.
 $$\begin{array} { | l | c | c | c | c | c | c | c | c | } 
\hline \text { Period } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \
\hline \text { Grossrequirements } & 0 & 200 & 200 & 500 & 0 & 400 & 0 & 400 \
\hline
\end{array}$$ 
Beginning inventory = 500 units
Setup cost = $500 per setup
Lead time = 1 week
Holding cost = $3 per unit per week
a. Develop the lot-for-lot MRP table.
b. Calculate the total relevant costs.

Accepted Answer

There are three setups at $500 each, tot

Question 18

The __________ is used to correct an erroneous dimension, quantity, or other specification in a bill of material.

Accepted Answer

engineerin

Question 19

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 2 of Part B. There are 30 units of B available.
a. Calculate the net requirements for A.
b. Calculate the gross requirements for B.
c. Calculate the net requirements for B.

Accepted Answer

(a) 110 - 60 = 50; (

Question 20

A(n) __________ system is packaged business software that automates and integrates the majority of their business processes, shares common data and practices across the entire enterprise, and produces and accesses information in a real-time environment.

Accepted Answer

enterprise

Exam 17: Material Requirements Planning MRP and ERP

A bill of material must be updated with the corrected dimensions of a part. The document that details this change is a(n)

The Wagner-Whitin algorithm is the most widely used MRP lot-sizing technique.

In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket

All of the following are advantages of enterprise resource planning (ERP) except it

Distribution resource planning (DRP) is

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

Linking a part requirement with the parent component that caused the requirement is referred to as

Construct an indented bill of material for a common 3-ring view binder (the kind that lets you slip your own cover sheet into the front panel and spine). Assume the rings to be 1 inch diameter. Don't worry about other dimensions? pay attention to accounting for all of the parts.

It is week 1 and there are currently 20 As in stock. The MPS calls for 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week when and how large of an order should be placed to meet the requirement of 300 As?

Given the following bill of material If the demand for product A is 50 units, what will be the gross requirement for component E?

Explain what is meant by "nervousness" of the MRP schedule. Provide an example. Name two tools that are particularly useful in reducing system nervousness in MRP systems.

The aggregate plan gets input or feedback from which of the following areas?

DRP is a time-phased stock-replenishment plan for all levels of a distribution network.

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

Which of the following statements regarding lot-sizing is true?

The Aggregate Plan, derived from the Master Production Schedule, specifies in more detail how much of which products is to be made at what times.

The __________ is used to correct an erroneous dimension, quantity, or other specification in a bill of material.

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 2 of Part B. There are 30 units of B available. a. Calculate the net requirements for A. b. Calculate the gross requirements for B. c. Calculate the net requirements for B.

A(n) __________ system is packaged business software that automates and integrates the majority of their business processes, shares common data and practices across the entire enterprise, and produces and accesses information in a real-time environment.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Outsourcing as a Supply-Chain Strategy

Inventory Management

Aggregate Planning

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

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