Question 1

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

Accepted Answer

A) Planned order schedule 
B) Exceptions reports 
C) Inventory record 
D) Firm orders from known customers 
E) Engineering change reports 
A) Planned order schedule 
B) Exceptions reports 
C) Inventory record 
D) Firm orders from known customers 
E) Engineering change reports B

Question 2

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

Accepted Answer

A) 1,000 
B) 950 
C) 500 
D) 400 
E) 350 
A) 1,000 
B) 950 
C) 500 
D) 400 
E) 350 C

Question 3

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  True

Question 4

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 5

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 6

We would expect to see which of the following in an MRP system's inventory status file?

Accepted Answer

A) End items produced 
B) Late/early delivery records 
C) Scrap parts 
D) Labor efficiency 
E) Computer errors 
A) End items produced 
B) Late/early delivery records 
C) Scrap parts 
D) Labor efficiency 
E) Computer errors

Question 7

Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?

Accepted Answer

A) 1,200 
B) 1,300 
C) 1,150 
D) 2,450 
E) None of these 
A) 1,200 
B) 1,300 
C) 1,150 
D) 2,450 
E) None of these

Question 8

Which of the following is an input to the master production schedule?

Accepted Answer

A) Prototype products from product development 
B) Aggregate component schedule 
C) Peg reports 
D) Exception reports 
E) Forecasts of random demand from customers 
A) Prototype products from product development 
B) Aggregate component schedule 
C) Peg reports 
D) Exception reports 
E) Forecasts of random demand from customers

Question 9

MRP is based on dependent demand.

Accepted Answer

A) True 
 B)False

Question 10

An input to the material requirements planning (MRP) system is an exception report.

Accepted Answer

A) True 
 B)False

Question 11

The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.

Accepted Answer

A) True 
 B)False

Question 12

Net change MRP reflects the exact status of each item managed by the system in "real time."

Accepted Answer

A) True 
 B)False

Question 13

A master production schedule is an input to a material requirements planning (MRP) system.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

Accepted Answer

A) Kanban 
B) Just-in-time system 
C) MRP 
D) Least unit cost 
E) Least total cost 
A) Kanban 
B) Just-in-time system 
C) MRP 
D) Least unit cost 
E) Least total cost

Question 15

Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?

Accepted Answer

A) Planning bill of materials file 
B) Modular bill of materials file 
C) Super bill of materials file 
D) Exception report file 
E) Peg record file 
A) Planning bill of materials file 
B) Modular bill of materials file 
C) Super bill of materials file 
D) Exception report file 
E) Peg record file

Question 16

Which of the following is not a lot-sizing technique used in MRP systems?

Accepted Answer

A) Lot-for-lot (L4L) 
B) Economic order quantity (EOQ) 
C) Least total cost (LT
C)  
D) Least unit cost (LU
C)  
E) Warehouse loading factor (WLF) 
A) Lot-for-lot (L4L) 
B) Economic order quantity (EOQ) 
C) Least total cost (LT
C)  
D) Least unit cost (LU
C)  
E) Warehouse loading factor (WLF)

Question 17

Which of the following is a dynamic lot-sizing technique that 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) Economic order quantity 
B) Lot-for-lot 
C) Least total cost 
D) Least unit cost 
E) ABC analysis 
A) Economic order quantity 
B) Lot-for-lot 
C) Least total cost 
D) Least unit cost 
E) ABC analysis

Question 18

Which of the following is a dynamic lot-sizing technique that 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) Economic order quantity 
B) Lot-for-lot 
C) Least total cost 
D) Least unit cost 
E) Inventory item averaging 
A) Economic order quantity 
B) Lot-for-lot 
C) Least total cost 
D) Least unit cost 
E) Inventory item averaging

Question 19

Which of the following industry types have high expected benefits from the application of MRP?

Accepted Answer

A) Fabricate-to-order 
B) Hospitals 
C) Assemble-to-order 
D) Aircraft manufacturers 
E) Oil refineries 
A) Fabricate-to-order 
B) Hospitals 
C) Assemble-to-order 
D) Aircraft manufacturers 
E) Oil refineries

Question 20

Which of the following is an input file necessary to run an MRP system?

Accepted Answer

A) Bill of materials (BOM) file 
B) Quality management report 
C) Exception reports 
D) Planned-order schedules 
E) Purchasing contracts 
A) Bill of materials (BOM) file 
B) Quality management report 
C) Exception reports 
D) Planned-order schedules 
E) Purchasing contracts

Exam 21: Material Requirements Planning

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

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

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

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

A product tree can do which of the following?

We would expect to see which of the following in an MRP system's inventory status file?

Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?

Which of the following is an input to the master production schedule?

MRP is based on dependent demand.

An input to the material requirements planning (MRP) system is an exception report.

The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.

Net change MRP reflects the exact status of each item managed by the system in "real time."

A master production schedule is an input to a material requirements planning (MRP) system.

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?

Which of the following is not a lot-sizing technique used in MRP systems?

Which of the following is a dynamic lot-sizing technique that 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?

Which of the following is a dynamic lot-sizing technique that 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?

Which of the following industry types have high expected benefits from the application of MRP?

Which of the following is an input file necessary to run an MRP system?

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