Question 1

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

Accepted Answer

A) True 
 B)False

Question 2

MRP is generally practiced on items with dependent demand.

Accepted Answer

A) True 
 B)False

Question 3

Consider the following bill of material. Forty units of Product A are needed. Assuming no on-hand inventory, and no scheduled receipts, explode the bill of material.

Accepted Answer

Item A: 40 units; Item B: 40 * 2 = 80 un

Question 4

Four A washers, Five B washers, Two C bolts, and a D bolt are required to make one Grill parts kit. If 100 grill part kits are needed how many more washers will be consumed than bolts?

Accepted Answer

Using MRP explosion gives A:40

Question 5

A company is trying to implement MRP but is having trouble determining which order sizing method will minimize costs. Setup cost is $200 and holding cost is $2/period. If each period is 1 week, gross requirements are 270 units per 10 weeks, and there are 6 planned order releases for every 10 weeks, calculate the cost for lot-for-lot compared to EOQ for an entire year. Assume that EOQ and lot-for-lot are computed as though the usage will occur continually throughout the year.

Accepted Answer

EOQ: D(yearly)=27/week*52 weeks = 1404 u

Question 6

Wheeled Coach uses __________ as the catalyst for low inventory, high quality, tight schedules, and accurate records.

Accepted Answer

material r

Question 7

Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is __________ days.

Accepted Answer

A)  6 
B)  9 
C)  13 
D)  17 
E)  cannot be determined 
A)  6 
B)  9 
C)  13 
D)  17 
E)  cannot be determined

Question 8

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

Accepted Answer

A) True 
 B)False

Question 9

What are time fences? Why are they used?

Accepted Answer

Time fences allow a segment of

Question 10

One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)

Accepted Answer

A)  modular bills 
B)  time phasing 
C)  time fences 
D)  lot sizing 
E)  closed loop system 
A)  modular bills 
B)  time phasing 
C)  time fences 
D)  lot sizing 
E)  closed loop system

Question 11

The __________ is the input to material requirements planning which lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product.

Accepted Answer

A)  bill of material 
B)  master production schedule 
C)  inventory records 
D)  assembly time chart 
E)  net requirements chart 
A)  bill of material 
B)  master production schedule 
C)  inventory records 
D)  assembly time chart 
E)  net requirements chart

Question 12

Describe finite capacity scheduling. How is it more realistic than MRP?

Accepted Answer

FCS provides the precise scheduling need

Question 13

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

Accepted Answer

A)  the company must add capacity by enlarging the facility 
B)  the company must add capacity by such tactics as overtime and subcontracting 
C)  the work center's load may be smoothed by such tactics as operations splitting or lot splitting 
D)  the aggregate plan must be revised 
E)  the Wagner-Whitin algorithm should be used to rebalance the load 
A)  the company must add capacity by enlarging the facility 
B)  the company must add capacity by such tactics as overtime and subcontracting 
C)  the work center's load may be smoothed by such tactics as operations splitting or lot splitting 
D)  the aggregate plan must be revised 
E)  the Wagner-Whitin algorithm should be used to rebalance the load

Question 14

Which of the following is False concerning enterprise resource planning (ERP)?

Accepted Answer

A)  It attempts to automate and integrate the majority of business processes. 
B)  It shares common data and practices across the enterprise. 
C)  It is inexpensive to implement. 
D)  It provides and accesses information in a real-time environment. 
E)  All of the above are true. 
A)  It attempts to automate and integrate the majority of business processes. 
B)  It shares common data and practices across the enterprise. 
C)  It is inexpensive to implement. 
D)  It provides and accesses information in a real-time environment. 
E)  All of the above are true.

Question 15

While ERP may provide a strategic advantage over competitors, it is so complex that many companies cannot adjust to it.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following regarding enterprise resource planning (ERP) is true?

Accepted Answer

A)  It involves an ongoing process for implementation. 
B)  It can incorporate improved, reengineered "best processes." 
C)  It has a software database that is off-the-shelf coding. 
D)  ERP systems usually include MRP, financial and human resource information. 
E)  All of the above are true. 
A)  It involves an ongoing process for implementation. 
B)  It can incorporate improved, reengineered "best processes." 
C)  It has a software database that is off-the-shelf coding. 
D)  ERP systems usually include MRP, financial and human resource information. 
E)  All of the above are true.

Question 18

Effective use of MRP and other dependent demand models does not require which of the following?

Accepted Answer

A)  master production schedule 
B)  bill of materials 
C)  inventory availability 
D)  lead times 
E)  cost of individual components 
A)  master production schedule 
B)  bill of materials 
C)  inventory availability 
D)  lead times 
E)  cost of individual components

Question 19

Distortion in MRP systems can be minimized when safety stock is held at the

Accepted Answer

A)  purchased component or raw material level 
B)  work-in-process level 
C)  finished goods level 
D)  A and B 
E)  A and C 
A)  purchased component or raw material level 
B)  work-in-process level 
C)  finished goods level 
D)  A and B 
E)  A and C

Question 20

The MPS calls for 50 units of Product A and 60 of B. There are currently 35 of Product B on hand. Each A requires 2 of Part C; each B requires 5 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.

Accepted Answer

(a) 60 - 35 = 25; (b

Exam 17: Material Requirements Planning MRP and ERP

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

MRP is generally practiced on items with dependent demand.

Consider the following bill of material. Forty units of Product A are needed. Assuming no on-hand inventory, and no scheduled receipts, explode the bill of material.

Four A washers, Five B washers, Two C bolts, and a D bolt are required to make one Grill parts kit. If 100 grill part kits are needed how many more washers will be consumed than bolts?

Wheeled Coach uses __________ as the catalyst for low inventory, high quality, tight schedules, and accurate records.

Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is __________ days.

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

What are time fences? Why are they used?

One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)

The __________ is the input to material requirements planning which lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product.

Describe finite capacity scheduling. How is it more realistic than MRP?

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

Which of the following is False concerning enterprise resource planning (ERP)?

While ERP may provide a strategic advantage over competitors, it is so complex that many companies cannot adjust to it.

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

Which of the following regarding enterprise resource planning (ERP) is true?

Effective use of MRP and other dependent demand models does not require which of the following?

Distortion in MRP systems can be minimized when safety stock is held at the

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