Question 1

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

Accepted Answer

A) Planned order schedule 
B) Peg report 
C) Planning report 
D) Inventory accuracy report 
E) Aggregate production plan report 
A) Planned order schedule 
B) Peg report 
C) Planning report 
D) Inventory accuracy report 
E) Aggregate production plan report

Question 2

In a typical inventory status record, which of the following would you not expect to see?

Accepted Answer

A) Scrap allowance 
B) Order quantity 
C) Gross requirements 
D) Planned-order releases 
E) Lost items 
A) Scrap allowance 
B) Order quantity 
C) Gross requirements 
D) Planned-order releases 
E) Lost items

Question 3

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

Accepted Answer

A) Exception report 
B) Computer-aided-design files 
C) Inventory records file 
D) Personnel files 
E) Planned order schedule 
A) Exception report 
B) Computer-aided-design files 
C) Inventory records file 
D) Personnel files 
E) Planned order schedule

Question 4

In an MRP problem, A is an MPS item.Every A requires 2 B's and 3 C's.Every B requires 5 C's. All lead times are two periods.Initial inventory values for A is 100, B is 200 and C is 0.Use lot-4-lot method for order quantities for all items.If gross requirement for A is 800 in period 9, what will be the planned order release for B in period 5?

Accepted Answer

A) 1600 
B) 1400 
C) 700 
D) 800 
E) 1200 
A) 1600 
B) 1400 
C) 700 
D) 800 
E) 1200

Question 5

In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A lot-for-lot (L4L) lot-sizing technique does not take into account setup costs or capacity limitations.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Question 10

The three main inputs to an MRP system are the bill of materials, the master schedule, and the inventory records file.

Accepted Answer

A) True 
 B)False

Question 11

In an MRP problem, A is an MPS item.Every A requires 2 B's and 3 C's.Every B requires 5 C's. All lead times are two periods.All initial inventory values are 0.Use lot-4-lot method for order quantities for all items.If gross requirement for A is 500 in period 8, what will be the planned order release for B in period 4?

Accepted Answer

A) 0 
B) 1000 
C) 500 
D) 1500 
E) 6500 
A) 0 
B) 1000 
C) 500 
D) 1500 
E) 6500

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The lot-for-lot (L4L) lot-sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

Accepted Answer

A) True 
 B)False

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

In an MRP problem, A is an MPS item.Every A requires 3 B's and 2 C's.Every B requires 5 C's. All lead times are one period.Initial inventory values for all items are 0.Use lot-4-lot method for order quantities for all items.If gross requirement for A is 400 in period 10, what will be the planned order release for C in period 8?

Accepted Answer

A) 800 
B) 1600 
C) 6800 
D) 6000 
E) 1200 
A) 800 
B) 1600 
C) 6800 
D) 6000 
E) 1200

Question 16

Generally, determining lot sizes in MRP systems is simple.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following industry types will not benefit greatly from the application of MRP?

Accepted Answer

A) Fabricate-to-order 
B) Assemble-to-stock 
C) Assemble-to-order 
D) Manufacture-to-order 
E) None of these 
A) Fabricate-to-order 
B) Assemble-to-stock 
C) Assemble-to-order 
D) Manufacture-to-order 
E) None of these

Question 18

Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Which of the following is most closely related to the reason a firm might implement MRP?

Accepted Answer

A) So it can order the right parts 
B) So it can order parts sufficient for immediate use 
C) So it can ensure that parts to arrive prior to when they are needed 
D) To ensure appropriate quality levels 
E) To keep process costs between the LCL and the UCL 
A) So it can order the right parts 
B) So it can order parts sufficient for immediate use 
C) So it can ensure that parts to arrive prior to when they are needed 
D) To ensure appropriate quality levels 
E) To keep process costs between the LCL and the UCL

Exam 21: Material Requirements Planning

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

In a typical inventory status record, which of the following would you not expect to see?

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

In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

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

A lot-for-lot (L4L) lot-sizing technique does not take into account setup costs or capacity limitations.

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 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.

The three main inputs to an MRP system are the bill of materials, the master schedule, and the inventory records file.

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

The lot-for-lot (L4L) lot-sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

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

Generally, determining lot sizes in MRP systems is simple.

Which of the following industry types will not benefit greatly from the application of MRP?

Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.

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

Which of the following is most closely related to the reason a firm might implement MRP?

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