Question 1

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become "lumpy."

Accepted Answer

A) True 
 B)False  True

Question 2

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

Accepted Answer

A) True 
 B)False  True

Question 3

Lot-for-lot (L4L) is the most common lot-sizing technique.

Accepted Answer

A) True 
 B)False  True

Question 4

MRP is most valuable where a number of products are made in batches using the same productive equipment.

Accepted Answer

A) True 
 B)False

Question 5

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Accepted Answer

A) True 
 B)False

Question 6

MRP stands for manufacturing requirements planning.

Accepted Answer

A) True 
 B)False

Question 7

MRP is based on dependent demand.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is considered a primary report in an MRP system?

Accepted Answer

A) Planning reports 
B) Performance reports 
C) Exception reports 
D) Planned order schedules 
E) Cycle counting reports 
A) Planning reports 
B) Performance reports 
C) Exception reports 
D) Planned order schedules 
E) Cycle counting reports

Question 9

If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?

Accepted Answer

A) 350 
B) 247 
C) 23 
D) 185 
E) 78 
A) 350 
B) 247 
C) 23 
D) 185 
E) 78

Question 10

The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

A) True 
 B)False

Question 11

When implemented correctly, MRP links all areas of the business.

Accepted Answer

A) True 
 B)False

Question 12

What are the three main inputs to an MRP program?
(1) _______________
(2) _______________
(3) _______________

Accepted Answer

(1 bill of materials.(2 master schedule.

Question 13

MRP systems seek to achieve which of the following?

Accepted Answer

A) Minimize lot sizes. 
B) Determine the number of dependent demand items needed. 
C) Relieve capacity bottlenecks. 
D) Provide a yardstick for future improvements. 
E) Improve on JIT methods. 
A) Minimize lot sizes. 
B) Determine the number of dependent demand items needed. 
C) Relieve capacity bottlenecks. 
D) Provide a yardstick for future improvements. 
E) Improve on JIT methods.

Question 14

In a net change MRP system, requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

Accepted Answer

A) True 
 B)False

Question 15

A product tree can do which of the following?

Accepted Answer

A) Help to compute component usage. 
B) Reduce product scrap. 
C) Reduce labor overtime. 
D) Reduce regular time labor. 
E) Locate raw material supplies. 
A) Help to compute component usage. 
B) Reduce product scrap. 
C) Reduce labor overtime. 
D) Reduce regular time labor. 
E) Locate raw material supplies.

Question 16

Which of the following can be used for lot sizing in an MRP system?

Accepted Answer

A) Low-level coding 
B) Time bucket size 
C) Least unit cost 
D) Inventory record file 
E) Peg inventory 
A) Low-level coding 
B) Time bucket size 
C) Least unit cost 
D) Inventory record file 
E) Peg inventory

Question 17

Generally, determining lot sizes in MRP systems is simple.

Accepted Answer

A) True 
 B)False

Question 18

If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size?

Accepted Answer

A) 2,000 
B) 1,200 
C) 1,000 
D) 300 
E) 200 
A) 2,000 
B) 1,200 
C) 1,000 
D) 300 
E) 200

Question 19

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

Accepted Answer

A) True 
 B)False

Question 20

The least unit cost method (LUC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

A) True 
 B)False

Exam 21: Material Requirements Planning

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become "lumpy."

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

Lot-for-lot (L4L) is the most common lot-sizing technique.

MRP is most valuable where a number of products are made in batches using the same productive equipment.

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

MRP stands for manufacturing requirements planning.

MRP is based on dependent demand.

Which of the following is considered a primary report in an MRP system?

If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?

The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

When implemented correctly, MRP links all areas of the business.

What are the three main inputs to an MRP program? (1) _______________ (2) _______________ (3) _______________

MRP systems seek to achieve which of the following?

In a net change MRP system, requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

A product tree can do which of the following?

Which of the following can be used for lot sizing in an MRP system?

Generally, determining lot sizes in MRP systems is simple.

If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size?

The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

The least unit cost method (LUC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

Introduction

Strategy

Design of Products and Services

Project Management

Strategic Capacity Management

Learning Curves

Manufacturing Processes

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics Distribution, and Transportation

Global Sourcing and Procurement

Enterprise Resource Planning Systems

Forecasting

Sales and Operations Planning

Inventory Management

Workcenter Scheduling

Theory of Constraints

Health Care

Operations Consulting

Filters

What are the three main inputs to an MRP program? (1) _______ (2) _ (3) _________