Question 1

Low-level coding in MRP indicates the exact status of each item managed by the system in "real time."

Accepted Answer

A) True 
 B)False

Question 2

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) Fabricate-to-stock 
B) Fabricate-to-order 
C) Assemble-to-stock 
D) Continuous process 
E) Service and repair parts 
A) Fabricate-to-stock 
B) Fabricate-to-order 
C) Assemble-to-stock 
D) Continuous process 
E) Service and repair parts

Question 4

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

Accepted Answer

A) True 
 B)False

Question 7

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.What is the low level code (LLC) for B and C?

Accepted Answer

A) LLC for B is 2 and C is 1 
B) LLC for both B and C are 2 
C) LLC for B is 1 and C is 2 
D) LLC for B is 0 and C is 1 
E) LLC for all items are 1 
A) LLC for B is 2 and C is 1 
B) LLC for both B and C are 2 
C) LLC for B is 1 and C is 2 
D) LLC for B is 0 and C is 1 
E) LLC for all items are 1

Question 8

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

Accepted Answer

A) True 
 B)False

Question 9

The master production schedule states the number of items to be produced during specific time periods.

Accepted Answer

A) True 
 B)False

Question 10

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.

Accepted Answer

A) True 
 B)False

Question 11

Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?

Accepted Answer

A) A consistent lag of supply behind demand 
B) Minimized carrying costs 
C) Minimized setup costs 
D) A just-in-time management philosophy 
E) Minimized quality problems 
A) A consistent lag of supply behind demand 
B) Minimized carrying costs 
C) Minimized setup costs 
D) A just-in-time management philosophy 
E) Minimized quality problems

Question 12

An output of MRP is a bill of materials (BOM) file.

Accepted Answer

A) True 
 B)False

Question 13

One of the main purposes of an MRP system is which of the following?

Accepted Answer

A) Track inventory levels. 
B) Create productive capacity. 
C) Decrease layers of management. 
D) Develop schedules specifying when each component should be ordered or produced. 
E) Upgrade manufacturing's professionalism. 
A) Track inventory levels. 
B) Create productive capacity. 
C) Decrease layers of management. 
D) Develop schedules specifying when each component should be ordered or produced. 
E) Upgrade manufacturing's professionalism.

Question 14

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

Accepted Answer

A) Inventory records file 
B) The aggregate plan 
C) The bill of materials 
D) The exception report 
E) Planned order schedules 
A) Inventory records file 
B) The aggregate plan 
C) The bill of materials 
D) The exception report 
E) Planned order schedules

Question 15

MRP stands for Material Requirements Planning.

Accepted Answer

A) True 
 B)False

Question 16

The time-phased plan specifying how many and when the firm plans to build each end item is called the materials requirements plan (MRP.)

Accepted Answer

A) True 
 B)False

Question 17

An input to the material requirements planning (MRP) system is an inventory records file.

Accepted Answer

A) True 
 B)False

Question 18

In an MRP program, the program accesses the status segment of an inventory record according to specific periods called which of the following?

Accepted Answer

A) Cubed time units 
B) Time buckets 
C) BOM units 
D) Time modules 
E) Time lines 
A) Cubed time units 
B) Time buckets 
C) BOM units 
D) Time modules 
E) Time lines

Question 19

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 20

A BOM file is also called which of the following?

Accepted Answer

A) Product tree 
B) Stocking plan 
C) Inventory usage record 
D) Production parts plan 
E) Time bucket schedule 
A) Product tree 
B) Stocking plan 
C) Inventory usage record 
D) Production parts plan 
E) Time bucket schedule

Exam 21: Material Requirements Planning

Low-level coding in MRP indicates the exact status of each item managed by the system in "real time."

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

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

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

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

MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

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.What is the low level code (LLC) for B and C?

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

The master production schedule states the number of items to be produced during specific time periods.

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.

Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?

An output of MRP is a bill of materials (BOM) file.

One of the main purposes of an MRP system is which of the following?

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

MRP stands for Material Requirements Planning.

The time-phased plan specifying how many and when the firm plans to build each end item is called the materials requirements plan (MRP.)

An input to the material requirements planning (MRP) system is an inventory records file.

In an MRP program, the program accesses the status segment of an inventory record according to specific periods called which of the following?

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?

A BOM file is also called which of the following?

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