Question 1

Compare MRP in services to MRP in manufacturing. Utilize a simple example in your comparison.

Accepted Answer

Services can exhibit dependent demand, j

Question 2

"Phantom bills" are bills of material for subassemblies that do not exist in reality.

Accepted Answer

A) True 
 B)False

Question 3

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

Accepted Answer

The information necessary for an operati

Question 4

In MRP, the number of units projected to be available at the beginning of each time period refers to

Accepted Answer

A)  net requirements 
B)  scheduled receipts 
C)  the projected usage of the item 
D)  the amount projected to be on hand 
E)  the amount necessary to cover a shortage 
A)  net requirements 
B)  scheduled receipts 
C)  the projected usage of the item 
D)  the amount projected to be on hand 
E)  the amount necessary to cover a shortage

Question 5

Which portion of the master production schedule is normally fixed, frozen, or firm?

Accepted Answer

A)  the entire schedule 
B)  only the aggregate schedule 
C)  only the middle of the schedule 
D)  only the near-term portion 
E)  only the far-term portion 
A)  the entire schedule 
B)  only the aggregate schedule 
C)  only the middle of the schedule 
D)  only the near-term portion 
E)  only the far-term portion

Question 6

An engineering change notice is used to change a(n)

Accepted Answer

A)  MRP 
B)  MPS 
C)  ERP 
D)  BOM 
E)  none of the above 
A)  MRP 
B)  MPS 
C)  ERP 
D)  BOM 
E)  none of the above

Question 7

By convention, the top level in a bill of material is designated level 1.

Accepted Answer

A) True 
 B)False

Question 8

The supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response (ECR) systems.

Accepted Answer

A) True 
 B)False

Question 9

Material requirements plans specify

Accepted Answer

A)  the quantities of the product families that need to be produced 
B)  the quantity and timing of planned order releases 
C)  the capacity needed to provide the projected output rate 
D)  the costs associated with alternative plans 
E)  whether one should use phantom bills of material or not 
A)  the quantities of the product families that need to be produced 
B)  the quantity and timing of planned order releases 
C)  the capacity needed to provide the projected output rate 
D)  the costs associated with alternative plans 
E)  whether one should use phantom bills of material or not

Question 10

The bill of material contains information necessary to

Accepted Answer

A)  place an order to replenish the item 
B)  calculate quantities on hand and on order 
C)  convert net requirements into higher level gross requirements 
D)  convert gross requirements into net requirements 
E)  convert (explode) net requirements at one level into gross requirements at the next level 
A)  place an order to replenish the item 
B)  calculate quantities on hand and on order 
C)  convert net requirements into higher level gross requirements 
D)  convert gross requirements into net requirements 
E)  convert (explode) net requirements at one level into gross requirements at the next level

Question 11

Time fences divide that segment of the MPS that can be revised from that section that is "frozen."

Accepted Answer

A) True 
 B)False

Question 12

By convention, the top level in a bill of material is

Accepted Answer

A)  level 0 
B)  level 1 
C)  level T 
D)  level 10 
E)  level 100 
A)  level 0 
B)  level 1 
C)  level T 
D)  level 10 
E)  level 100

Question 13

A master production schedule contains information about

Accepted Answer

A)  quantities and required delivery dates of all subassemblies 
B)  quantities and required delivery dates of final products 
C)  inventory on hand for each subassembly 
D)  inventory on hand for each final product 
E)  scheduled receipts for each final product 
A)  quantities and required delivery dates of all subassemblies 
B)  quantities and required delivery dates of final products 
C)  inventory on hand for each subassembly 
D)  inventory on hand for each final product 
E)  scheduled receipts for each final product

Question 14

In continuous (stock-to-forecast) operations, the master production schedule is usually expressed in terms of

Accepted Answer

A)  end items 
B)  modules 
C)  kits 
D)  customer orders 
E)  warehouse orders 
A)  end items 
B)  modules 
C)  kits 
D)  customer orders 
E)  warehouse orders

Question 15

A very simple product (A) consists of a base (B) and a casting (C). The base consists of a plate (P) and three fasteners (F). There are currently 30 castings and 100 bases on hand. Final assembly takes one week. The casting has a lead time of three weeks. All other parts have one week lead times. There are no scheduled receipts. All components are lot-for-lot. The MPS requires 80 units of product A in week 5 and 120 in week 8. Produce the MRP for the upcoming eight weeks. Produce a list of all planned order releases.

Accepted Answer

The answer of A very simple product (A) consists of...

Question 16

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.
   
 $\begin{array}{|c|c|c|c|}
\hline \text { Item } & \text { Lead Time } & \text { Quantity on Hand } & \text { Scheduled receipts } \
\hline \mathrm{J} & 1 & 0 & \
\hline \mathrm{K} & 2 & 20 & 30 \mathrm{in} \text { week 2 } \
\hline \mathrm{L} & 2 & 0 & \
\hline \mathrm{I} & 1 & 20 & 10 \mathrm{in} \text { week 1 }\\hline
\end{array}$

Accepted Answer

The answer of Consider the bill of material for Product...

Question 17

__________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Accepted Answer

The answer of __________ is a lot-sizing technique that generates...

Question 18

Which of the following statements regarding Wheeled Coach is False?

Accepted Answer

A)  Wheeled Coach has found competitive advantage through MRP. 
B)  Wheeled Coach builds ambulances in a repetitive process. 
C)  Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to rise. 
D)  Wheeled Coach's MRP system maintains excellent record integrity. 
E)  Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP. 
A)  Wheeled Coach has found competitive advantage through MRP. 
B)  Wheeled Coach builds ambulances in a repetitive process. 
C)  Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to rise. 
D)  Wheeled Coach's MRP system maintains excellent record integrity. 
E)  Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP.

Question 19

Each X requires 2 of component Y and 1 of part W. Each Y requires 10 of Z. Each W requires 3 of Q and 2 of R. Lead times are X = 1 week, Y = 1 week, W = 2 weeks, R = 1 week, Z = 3 weeks, and Q = 3 weeks.
a. Construct the time-phased product structure.
b. Construct the bill of material.

Accepted Answer

The answer of Each X requires 2 of component Y...

Question 20

When safety stock is deemed absolutely necessary, the usual policy is to build it into which category of the MRP logic?

Accepted Answer

A)  Gross Requirements 
B)  Scheduled Receipts 
C)  Projected On Hand 
D)  Net Requirements 
E)  Planned Order Receipts 
A)  Gross Requirements 
B)  Scheduled Receipts 
C)  Projected On Hand 
D)  Net Requirements 
E)  Planned Order Receipts

Exam 17: Material Requirements Planning MRP and ERP

Compare MRP in services to MRP in manufacturing. Utilize a simple example in your comparison.

"Phantom bills" are bills of material for subassemblies that do not exist in reality.

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

In MRP, the number of units projected to be available at the beginning of each time period refers to

Which portion of the master production schedule is normally fixed, frozen, or firm?

An engineering change notice is used to change a(n)

By convention, the top level in a bill of material is designated level 1.

The supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response (ECR) systems.

Material requirements plans specify

The bill of material contains information necessary to

Time fences divide that segment of the MPS that can be revised from that section that is "frozen."

By convention, the top level in a bill of material is

A master production schedule contains information about

In continuous (stock-to-forecast) operations, the master production schedule is usually expressed in terms of

__________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Which of the following statements regarding Wheeled Coach is False?

Each X requires 2 of component Y and 1 of part W. Each Y requires 10 of Z. Each W requires 3 of Q and 2 of R. Lead times are X = 1 week, Y = 1 week, W = 2 weeks, R = 1 week, Z = 3 weeks, and Q = 3 weeks. a. Construct the time-phased product structure. b. Construct the bill of material.

When safety stock is deemed absolutely necessary, the usual policy is to build it into which category of the MRP logic?

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