Question 1

In many organizations, information flows much more freely within functions than it does across functions. __________ represents an expanded effort to overcome this tendency.

Accepted Answer

A)  MRP 
B)  ERP 
C)  CRP 
D)  MRPII 
E)  DRP 
A)  MRP 
B)  ERP 
C)  CRP 
D)  MRPII 
E)  DRP

Question 2

ERP began in manufacturing organizations but has spread into service organizations.

Accepted Answer

A) True 
 B)False

Question 3

Capacity requirements planning is an important feature in MRP.

Accepted Answer

A) True 
 B)False

Question 4

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: $$\begin{array} { l c c } 
\text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \
\text { Deluxe Easter Basket } & 1 \text { week } & 10 \
\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \
\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50
\end{array}$$
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.
If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?

Accepted Answer

A)  120 
B)  200 
C)  280 
D)  160 
E)  150 
A)  120 
B)  200 
C)  280 
D)  160 
E)  150

Question 5

Which of the following is not usually necessary in order to have an effective MRP system?

Accepted Answer

A)  a computer and software 
B)  an accurate bill of materials 
C)  lot-for-lot ordering 
D)  an up-to-date master schedule 
E)  integrity of file data 
A)  a computer and software 
B)  an accurate bill of materials 
C)  lot-for-lot ordering 
D)  an up-to-date master schedule 
E)  integrity of file data

Question 6

In MRP, under lot-for-lot ordering, planned-order receipts are:

Accepted Answer

A)  identical to scheduled receipts. 
B)  identical to net requirements. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  gross requirements. 
E)  available-to-promise inventory. 
A)  identical to scheduled receipts. 
B)  identical to net requirements. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  gross requirements. 
E)  available-to-promise inventory.

Question 7

In MRP, scheduled receipts are:

Accepted Answer

A)  identical to planned-order receipts. 
B)  identical to planned-order releases. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  net requirements. 
E)  available-to-promise inventory. 
A)  identical to planned-order receipts. 
B)  identical to planned-order releases. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  net requirements. 
E)  available-to-promise inventory.

Question 8

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: $$\begin{array} { l c c } 
\text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \
\text { Deluxe Easter Basket } & 1 \text { week } & 10 \
\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \
\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50
\end{array}$$
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.
How many dark chocolate eggs should be ordered?

Accepted Answer

A)  310 
B)  450 
C)  500 
D)  550 
E)  600 
A)  310 
B)  450 
C)  500 
D)  550 
E)  600

Question 9

Refer to this product tree:  
If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed?

Accepted Answer

A)  340 
B)  350 
C)  380 
D)  400 
E)  590 
A)  340 
B)  350 
C)  380 
D)  400 
E)  590

Question 10

Which is true of a net-change system?

Accepted Answer

A)  It is a batch-type system which is updated periodically. 
B)  It is usually run at the beginning of each month. 
C)  The production plan is modified to reflect changes as they occur 
D)  It is used to authorize the execution of planned orders. 
E)  It indicates the amount and timing of future changes. 
A)  It is a batch-type system which is updated periodically. 
B)  It is usually run at the beginning of each month. 
C)  The production plan is modified to reflect changes as they occur 
D)  It is used to authorize the execution of planned orders. 
E)  It indicates the amount and timing of future changes.

Question 11

Initially, the output from MRP may not represent a feasible schedule.

Accepted Answer

A) True 
 B)False

Question 12

A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.

Accepted Answer

A) True 
 B)False

Question 13

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

Accepted Answer

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

Question 14

Independent demand tends to be more "lumpy" than dependent demand, meaning that we need large quantities followed by periods of no demand.

Accepted Answer

A) True 
 B)False

Question 15

Low-level coding represents items less than $18 per unit.

Accepted Answer

A) True 
 B)False

Question 16

The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule.

Accepted Answer

A) True 
 B)False

Question 17

The master production schedule states which end items are to be produced, in addition to when and how many.

Accepted Answer

A) True 
 B)False

Question 18

Successful implementation of an effective MRP system depends upon: (1) the recognition of the difference between independent and dependent demand, and (2):

Accepted Answer

A)  computers. 
B)  development of the EOQ model. 
C)  inventory control systems. 
D)  blanket purchase orders. 
E)  the Internet. 
A)  computers. 
B)  development of the EOQ model. 
C)  inventory control systems. 
D)  blanket purchase orders. 
E)  the Internet.

Question 19

When MRP II systems include feedback to revise a plan that is not feasible, they are known as:

Accepted Answer

A)  MRP III. 
B)  enterprise resource planning. 
C)  circular MRP. 
D)  feasible MRP. 
E)  closed loop MRP. 
A)  MRP III. 
B)  enterprise resource planning. 
C)  circular MRP. 
D)  feasible MRP. 
E)  closed loop MRP.

Question 20

MRP, considering inventory position, bills of material, open purchase orders, and lead times guarantees a feasible production plan if the inputs to MRP are accurate.

Accepted Answer

A) True 
 B)False

Exam 17: MRP and ERP

In many organizations, information flows much more freely within functions than it does across functions. __________ represents an expanded effort to overcome this tendency.

ERP began in manufacturing organizations but has spread into service organizations.

Capacity requirements planning is an important feature in MRP.

Which of the following is not usually necessary in order to have an effective MRP system?

In MRP, under lot-for-lot ordering, planned-order receipts are:

In MRP, scheduled receipts are:

Refer to this product tree: If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed?

Which is true of a net-change system?

Initially, the output from MRP may not represent a feasible schedule.

A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

Independent demand tends to be more "lumpy" than dependent demand, meaning that we need large quantities followed by periods of no demand.

Low-level coding represents items less than $18 per unit.

The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule.

The master production schedule states which end items are to be produced, in addition to when and how many.

Successful implementation of an effective MRP system depends upon: (1) the recognition of the difference between independent and dependent demand, and (2):

When MRP II systems include feedback to revise a plan that is not feasible, they are known as:

MRP, considering inventory position, bills of material, open purchase orders, and lead times guarantees a feasible production plan if the inputs to MRP are accurate.

Introduction to Operations Management

Competitiveness

Forecasting

Product and Service Design

RELIABILITY – Static

Strategic Capacity Planning for Products and Services

Decision Theory– Static

Process Selection and Facility Layout

Work Design and Measurement

learning curve– Static

Location Planning and Analysis

The Transportation Model– Static

Management of Quality

Quality Control

Acceptance Sampling– Static

Aggregate Planning and Master Scheduling

Inventory Management

JIT and Lean Operations

Maintenance– Static

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters