Question 1

A bill of material lists all components, ingredients, and materials needed to produce one unit of an end item.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

Accepted Answer

A)  FCS recognizes the finite nature of capacity while MRP does not. 
B)  FCS works in services while MRP does not. 
C)  MRP requires time buckets while FCS does not. 
D)  FCS is an input into traditional MRP systems. 
E)  FCS uses the Wagner-Whitin algorithm while MRP uses lot-for-lot and EOQ. 
A)  FCS recognizes the finite nature of capacity while MRP does not. 
B)  FCS works in services while MRP does not. 
C)  MRP requires time buckets while FCS does not. 
D)  FCS is an input into traditional MRP systems. 
E)  FCS uses the Wagner-Whitin algorithm while MRP uses lot-for-lot and EOQ.

Question 3

Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is __________ weeks.

Accepted Answer

A)  6 
B)  9 
C)  12 
D)  18 
E)  28 
A)  6 
B)  9 
C)  12 
D)  18 
E)  28

Question 4

What is the "supermarket" as it is used in MRP?
 How does it alter the responsibility for dealing with lead-time offsets?

Accepted Answer

The supermarket concept applies when par

Question 5

A bill of material lists the

Accepted Answer

A)  times needed to perform all phases of production 
B)  production schedules for all products 
C)  components, ingredients, and materials required to produce an item 
D)  operations required to produce an item 
E)  components, ingredients, materials, and assembly operations required to produce an item 
A)  times needed to perform all phases of production 
B)  production schedules for all products 
C)  components, ingredients, and materials required to produce an item 
D)  operations required to produce an item 
E)  components, ingredients, materials, and assembly operations required to produce an item

Question 6

The following table is an example of a(n) $$\begin{array} { | l | l | l | l | l | l | } 
\hline & \text { Week 1 } & \text { Week 2 } & \text { Week 3 } & \text { Week 4 } & \text { Week 5 } \
\hline \text { Clothes Washer } & & 200 & & 100 & \
\hline \text { Clothes Dryer } & 300 & 100 & 100 & & 100 \
\hline \text { Upright Freezer } & & & 200 & 500 & \
\hline
\end{array}$$

Accepted Answer

A)  aggregate plan 
B)  load report 
C)  master production schedule 
D)  capacity plan 
E)  inventory record 
A)  aggregate plan 
B)  load report 
C)  master production schedule 
D)  capacity plan 
E)  inventory record

Question 7

The master production schedule is a forecast of demand for families of products.

Accepted Answer

A) True 
 B)False

Question 8

Jacquie Welkener, operations manager for ABC Technologies, must schedule work for the next five days. Each unit takes 30 minutes to process. Available capacity is 8 hours per day. The production order quantities are 12, 18, 20, 13, and 17 for Monday through Friday, respectively. What should be the production plan?

Accepted Answer

Sixteen units should be produced each da

Question 9

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

Accepted Answer

A)  .005 
B)  60 
C)  72 
D)  100 
E)  200 
A)  .005 
B)  60 
C)  72 
D)  100 
E)  200

Question 10

A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles. Some assemblies and parts are common to many end items. To relieve the MPS of performing order releases on these common parts, the firm might choose to use the __________ technique.

Accepted Answer

A)  Wagner-Whitin 
B)  economic part period 
C)  supermarket 
D)  gross material requirements 
E)  resource requirements profile 
A)  Wagner-Whitin 
B)  economic part period 
C)  supermarket 
D)  gross material requirements 
E)  resource requirements profile

Question 11

A dependent demand item is so called because its demand is dependent on customer preferences.

Accepted Answer

A) True 
 B)False

Question 12

A(n) __________ is a bill of material for components, usually assemblies that exist only temporarily; they are never inventoried.

Accepted Answer

Phantom bi

Question 13

Describe the role of record accuracy in Wheeled Coach's successful use of MRP. Is this company's experience the exception or the rule?
 Answer in a well-developed paragraph.

Accepted Answer

Wheeled Coach's record integrity is exce

Question 14

Dependent demand and independent demand items differ in that

Accepted Answer

A)  for any product, all components are dependent-demand items 
B)  the need for independent-demand items is forecast 
C)  the need for dependent-demand items is calculated 
D)  All of the above are true. 
E)  None of the above is true. 
A)  for any product, all components are dependent-demand items 
B)  the need for independent-demand items is forecast 
C)  the need for dependent-demand items is calculated 
D)  All of the above are true. 
E)  None of the above is true.

Question 15

In general, the lot-for-lot approach should be used whenever economical.

Accepted Answer

A) True 
 B)False

Question 16

Product A is made from 2 Bs and 1 C. Lead times for A, B, and C are 2, 3, and 2 weeks respectively. Currently there are 2 Bs and a 5 Cs on hand, with 5 of each scheduled to arrive at the end of week 1. If 20 As are needed during week 4, can the order be completed (it is the start of week 0 currently)?

Accepted Answer

To produce 20 As requires 40 B

Question 17

Which of the following is not a disadvantage of ERP systems?

Accepted Answer

A)  They involve an ongoing process for implementation, which may never be completed 
B)  They have software that is off-the-shelf coding. 
C)  Expertise in ERP is limited, with staffing an ongoing problem. 
D)  They are so complex that many companies cannot adjust to them. 
E)  Implementation may require major changes in the company and its processes. 
A)  They involve an ongoing process for implementation, which may never be completed 
B)  They have software that is off-the-shelf coding. 
C)  Expertise in ERP is limited, with staffing an ongoing problem. 
D)  They are so complex that many companies cannot adjust to them. 
E)  Implementation may require major changes in the company and its processes.

Question 18

A paint company mixes ten different base colors into 3,000 different color options. If the MPS is organized around the ten different base colors their bills of material are classified as

Accepted Answer

A)  Phantom 
B)  Planning 
C)  Modular 
D)  Low-Level 
E)  A and B 
A)  Phantom 
B)  Planning 
C)  Modular 
D)  Low-Level 
E)  A and B

Question 19

If safety stock is desired it should be built into which portion of MRP?

Accepted Answer

A)  any 
B)  none 
C)  raw materials 
D)  finished assemblies 
E)  either C or D 
A)  any 
B)  none 
C)  raw materials 
D)  finished assemblies 
E)  either C or D

Question 20

The __________ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.

Accepted Answer

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

Exam 17: Material Requirements Planning MRP and ERP

A bill of material lists all components, ingredients, and materials needed to produce one unit of an end item.

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is __________ weeks.

What is the "supermarket" as it is used in MRP? How does it alter the responsibility for dealing with lead-time offsets?

A bill of material lists the

The following table is an example of a(n) Week 1 Week 2 Week 3 Week 4 Week 5 Clothes Washer 200 100 Clothes Dryer 300 100 100 100 Upright Freezer 200 500

The master production schedule is a forecast of demand for families of products.

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles. Some assemblies and parts are common to many end items. To relieve the MPS of performing order releases on these common parts, the firm might choose to use the __________ technique.

A dependent demand item is so called because its demand is dependent on customer preferences.

A(n) __________ is a bill of material for components, usually assemblies that exist only temporarily; they are never inventoried.

Describe the role of record accuracy in Wheeled Coach's successful use of MRP. Is this company's experience the exception or the rule? Answer in a well-developed paragraph.

Dependent demand and independent demand items differ in that

In general, the lot-for-lot approach should be used whenever economical.

Which of the following is not a disadvantage of ERP systems?

A paint company mixes ten different base colors into 3,000 different color options. If the MPS is organized around the ten different base colors their bills of material are classified as

If safety stock is desired it should be built into which portion of MRP?

The __________ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.

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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