Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Capacity requirements planning is an important feature in MRP+.

Accepted Answer

A) True 
 B)False

Question 3

Lumpy demand for components results primarily from the periodic scheduling of batch production.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

ERP implementation probably will not require:

Accepted Answer

A)  cross-functional teams. 
B)  just a few weeks to install. 
C)  intensive training. 
D)  high funding for both initial cost and maintenance. 
E)  frequent upgrades after installation. 
A)  cross-functional teams. 
B)  just a few weeks to install. 
C)  intensive training. 
D)  high funding for both initial cost and maintenance. 
E)  frequent upgrades after installation.

Question 6

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper-level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Accepted Answer

A) True 
 B)False

Question 7

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: $$\begin{array} { c l l } 
\text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \
\hline \text { Deluxe Easter Basket } & 1 \text { week } & 10 \
\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \
\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50
\end{array}$$ Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge. 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 8

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: $$\begin{array} { c l l } 
\text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \
\hline \text { Deluxe Easter Basket } & 1 \text { week } & 10 \
\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \
\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50
\end{array}$$ Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge. What is the net requirement for dark chocolate truffles to fill this order?

Accepted Answer

A)  100 
B)  140 
C)  150 
D)  180 
E)  200 
A)  100 
B)  140 
C)  150 
D)  180 
E)  200

Question 9

End item Alpha's product structure tree and inventory information are as follows:   (A) If 50 units of Alpha are to be assembled, how many additional units of S will be needed? All parts can be ordered using lot-for-lot ordering, except M, which must be ordered in multiples of 40 units. [Hint: You don't need to do an MRP plan.]
(B) An order for 100 units of Alpha is scheduled to be shipped at the start of week 9. When is the earliest that any particular component must be started so that the order for Alpha will be ready to ship? [Hint: You don't need to do an MRP plan.]

Accepted Answer

(A) Gross requirements for S a

Question 10

Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is used, what will be the quantity of the first planned receipt?

Accepted Answer

A)  60 
B)  100 
C)  160 
D)  cannot be determined 
E)  none of the choices 
A)  60 
B)  100 
C)  160 
D)  cannot be determined 
E)  none of the choices

Question 11

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

Accepted Answer

A)  master production schedule. 
B)  bill of materials. 
C)  inventory records. 
D)  assembly time chart. 
E)  net requirements chart. 
A)  master production schedule. 
B)  bill of materials. 
C)  inventory records. 
D)  assembly time chart. 
E)  net requirements chart.

Question 12

In MRP, scheduled receipts are:

Accepted Answer

A)  identical to planned-order receipts. 
B)  identical to planned-order releases. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  net requirements. 
E)  available-to-promise inventory. 
A)  identical to planned-order receipts. 
B)  identical to planned-order releases. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  net requirements. 
E)  available-to-promise inventory.

Question 13

In MRP, under lot-for-lot ordering, planned-order receipts are:

Accepted Answer

A)  identical to scheduled receipts. 
B)  identical to planned-order releases. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  gross requirements. 
E)  available-to-promise inventory. 
A)  identical to scheduled receipts. 
B)  identical to planned-order releases. 
C)  open orders (that is, ordered before the first time bucket, but not delivered yet). 
D)  gross requirements. 
E)  available-to-promise inventory.

Question 14

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

Accepted Answer

A) True 
 B)False

Question 15

MRP output reports are divided into two main groups, daily and weekly.

Accepted Answer

A) True 
 B)False

Question 16

Refer to this product tree:   If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed?

Accepted Answer

A)  48 
B)  144 
C)  192 
D)  212 
E)  272 
A)  48 
B)  144 
C)  192 
D)  212 
E)  272

Question 17

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

Accepted Answer

A)  master production schedule. 
B)  bill of materials. 
C)  inventory records. 
D)  assembly time chart. 
E)  net requirements chart. 
A)  master production schedule. 
B)  bill of materials. 
C)  inventory records. 
D)  assembly time chart. 
E)  net requirements chart.

Question 18

The multiplication process used by MRP to determine lower-level requirements is called:

Accepted Answer

A)  time-phasing. 
B)  pegging. 
C)  netting. 
D)  projecting. 
E)  exploding. 
A)  time-phasing. 
B)  pegging. 
C)  netting. 
D)  projecting. 
E)  exploding.

Question 19

MRP can apply to services, especially when it is focused on:
(I) work-in-process inventory.
(II) finished goods inventory.
(III) service components.
(IV) materials that are part of the service process.

Accepted Answer

A)  II and IV only 
B)  I and III only 
C)  I, II, and IV only 
D)  I, III, and IV only 
E)  III and IV only 
A)  II and IV only 
B)  I and III only 
C)  I, II, and IV only 
D)  I, III, and IV only 
E)  III and IV only

Question 20

_______ is choosing how many to order or make.

Accepted Answer

A)  Quantity determination 
B)  Package sizing 
C)  Lot sizing 
D)  Grouping 
E)  Aggregation 
A)  Quantity determination 
B)  Package sizing 
C)  Lot sizing 
D)  Grouping 
E)  Aggregation

Exam 12: MRP and ERP

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

Capacity requirements planning is an important feature in MRP+.

Lumpy demand for components results primarily from the periodic scheduling of batch production.

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

ERP implementation probably will not require:

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper-level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is used, what will be the quantity of the first planned receipt?

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

In MRP, scheduled receipts are:

In MRP, under lot-for-lot ordering, planned-order receipts are:

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

MRP output reports are divided into two main groups, daily and weekly.

Refer to this product tree: If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed?

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

The multiplication process used by MRP to determine lower-level requirements is called:

MRP can apply to services, especially when it is focused on: (I) work-in-process inventory. (II) finished goods inventory. (III) service components. (IV) materials that are part of the service process.

_______ is choosing how many to order or make.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Extension: Reliability

Strategic Capacity Planning for Products and Services

Extension: Decision Theory

Process Selection and Facility Layout

Work Design and Measurement

Extension: Learning Curves

Location Planning and Analysis

Extension: The Transportation Model

Management of Quality

Quality Control

Extension: Acceptance Sampling

Aggregate Planning and Master Scheduling

Inventory Management

Jit and Lean Operations

Extension: Maintenance

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters