Question 1

MRP is used within most MRP II and ERP systems.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Safety time is sometimes used in MRP rather than safety stock quantities.

Accepted Answer

A) True 
 B)False

Question 4

Which statement concerning MRP II is false?

Accepted Answer

A) It is basically a computerized system. 
B) It can handle complex planning and scheduling quickly. 
C) It involves other functional areas in the production planning process. 
D) It involves capacity planning. 
E) It produces a production plan which includes all resources required. 
A) It is basically a computerized system. 
B) It can handle complex planning and scheduling quickly. 
C) It involves other functional areas in the production planning process. 
D) It involves capacity planning. 
E) It produces a production plan which includes all resources required.

Question 5

ERP represents an expanded effort to integrate standardized record-keeping that shares information among different areas of an organization.

Accepted Answer

A) True 
 B)False

Question 6

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

Accepted Answer

A) True 
 B)False

Question 7

Before a schedule receipt can take place, and order must be placed with a vendor.

Accepted Answer

A) True 
 B)False

Question 8

Using the product tree shown, determine the following:
(A) the quantity of component K that will be needed to assemble 80 units of P, assuming no on-hand inventory of any components exists.
(B) the quantity of component K needed to assemble 80 units of P, given on-hand inventory of 30 A's, 50 B's and 20 C's.

Accepted Answer

@#IMG-DLM& A) [3 Ks per C x 2 Cs per A x 2 As per

Question 9

MRP II is simply an improved version of MRP that processes faster and can plan for a larger number of end items.

Accepted Answer

A) True 
 B)False

Question 10

One of the primary output reports of MRP concerns changes to planned orders.

Accepted Answer

A) True 
 B)False

Question 11

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 12

A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is:

Accepted Answer

A) computer aided manufacturing (CAM) 
B) computer integrated manufacturing (CIM) 
C) economic order quantity (EOQ) 
D) material requirements planning (MRP) 
E) economic run size (ERS) 
A) computer aided manufacturing (CAM) 
B) computer integrated manufacturing (CIM) 
C) economic order quantity (EOQ) 
D) material requirements planning (MRP) 
E) economic run size (ERS)

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?

Accepted Answer

A) economic order quantity 
B) economic run size 
C) lot-for-lot 
D) part-period 
E) all of the above 
A) economic order quantity 
B) economic run size 
C) lot-for-lot 
D) part-period 
E) all of the above

Question 16

An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

Accepted Answer

A) True 
 B)False

Question 17

Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called:

Accepted Answer

A) pegging 
B) planned order release 
C) net change 
D) regenerative 
E) exception report 
A) pegging 
B) planned order release 
C) net change 
D) regenerative 
E) exception report

Question 18

Which one of the following is not an input in an MRP system?

Accepted Answer

A) planned-order schedules 
B) bill of materials 
C) master production schedule 
D) inventory records 
E) All are inputs. 
A) planned-order schedules 
B) bill of materials 
C) master production schedule 
D) inventory records 
E) All are inputs.

Question 19

Net requirements equal gross requirements minus safety stock.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 12: MRP and ERP

MRP is used within most MRP II and ERP systems.

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

Safety time is sometimes used in MRP rather than safety stock quantities.

Which statement concerning MRP II is false?

ERP represents an expanded effort to integrate standardized record-keeping that shares information among different areas of an organization.

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

Before a schedule receipt can take place, and order must be placed with a vendor.

MRP II is simply an improved version of MRP that processes faster and can plan for a larger number of end items.

One of the primary output reports of MRP concerns changes to planned orders.

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

A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is:

If the firm is using a fixed period lot size of two periods, what is the order size for the first order?

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

Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?

An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called:

Which one of the following is not an input in an MRP system?

Net requirements equal gross requirements minus safety stock.

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

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

Inventory Management

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Extension 4: Reliability

Extension 5: Decision Theory

Extension 7: Learning Curves

Extension 8: The Transportation Model

Extension 10: Acceptance Sampling

Extension 14: Maintenance

Filters