Question 1

A modular bill of materials includes items with fractional options.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a production activity report generated by MRP?

Accepted Answer

A) Exception report 
B) Planning report 
C) Performance control report 
D) Planned-order schedules 
E) Bill of materials report 
A) Exception report 
B) Planning report 
C) Performance control report 
D) Planned-order schedules 
E) Bill of materials report

Question 3

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

Accepted Answer

A) True 
 B)False

Question 4

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

The least unit cost method of lot-sizing adds ordering, stockout, and inventory carrying costs 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

Question 7

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

Accepted Answer

A) Bill of materials (BOM) file 
B) Inventory records file 
C) Exception reports 
D) Planned-order schedules 
E) None of these 
A) Bill of materials (BOM) file 
B) Inventory records file 
C) Exception reports 
D) Planned-order schedules 
E) None of these

Question 8

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 9

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

Question 10

The economic order quantity (EOQ) lot-sizing technique uses the "square root formula" to balance setup cost, carrying cost, and cost of stockouts.

Accepted Answer

A) True 
 B)False

Question 11

"Projected available balance" is a term referring to unsold finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 12

In a net change MRP system, requirements and schedules are considered rigid and never updated.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

Accepted Answer

A) 670 
B) 600 
C) 530 
D) 70 
E) None of these 
A) 670 
B) 600 
C) 530 
D) 70 
E) None of these

Question 14

Time fences are periods of time having some specified level of opportunity for the customer to make changes.

Accepted Answer

A) True 
 B)False

Question 15

Net change MRP systems are "activity" driven.

Accepted Answer

A) True 
 B)False

Question 16

The customer grace period is a time span having some specified level of opportunity for the customer to make changes.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Which of the following is one of the main purposes of an MRP system?

Accepted Answer

A) Educate personnel in basic work rules. 
B) Determine the amount of materials needed to produce each end item. 
C) Stimulate the work force. 
D) Decrease labor requirements. 
E) Increase inventory accuracy. 
A) Educate personnel in basic work rules. 
B) Determine the amount of materials needed to produce each end item. 
C) Stimulate the work force. 
D) Decrease labor requirements. 
E) Increase inventory accuracy.

Question 19

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 20

MRP stands for manufacturing requirements planning.

Accepted Answer

A) True 
 B)False

Exam 21: Material Requirements Planning

A modular bill of materials includes items with fractional options.

Which of the following is not a production activity report generated by MRP?

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

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 adds ordering, stockout, and inventory carrying costs 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 is an input to the master production schedule?

MRP systems seek to achieve which of the following?

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.

The economic order quantity (EOQ) lot-sizing technique uses the "square root formula" to balance setup cost, carrying cost, and cost of stockouts.

"Projected available balance" is a term referring to unsold finished goods inventory.

In a net change MRP system, requirements and schedules are considered rigid and never updated.

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

Time fences are periods of time having some specified level of opportunity for the customer to make changes.

Net change MRP systems are "activity" driven.

The customer grace period is a time span having some specified level of opportunity for the customer to make changes.

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

Which of the following is one of the main purposes of an MRP system?

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.

MRP stands for manufacturing requirements planning.

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