Question 1

In MRP, the gross requirements of a given component part are calculated from:

Accepted Answer

A)  net requirements + amount on-hand. 
B)  gross requirements of the immediate parent. 
C)  planned orders of the end item. 
D)  net requirements of end item. 
E)  planned orders of the immediate parent. 
A)  net requirements + amount on-hand. 
B)  gross requirements of the immediate parent. 
C)  planned orders of the end item. 
D)  net requirements of end item. 
E)  planned orders of the immediate parent.

Question 2

The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Accepted Answer

A)  pegging 
B)  safety stock 
C)  increased order sizes 
D)  safety time 
E)  low-level coding 
A)  pegging 
B)  safety stock 
C)  increased order sizes 
D)  safety time 
E)  low-level coding

Question 4

Scheduled receipts differ from planned receipts in that scheduled receipts:

Accepted Answer

A)  have longer lead times. 
B)  involve orders that have not yet been placed. 
C)  have not been pegged with actual customer orders. 
D)  involve orders that have already been placed. 
E)  involve exceptions to order quantity policies. 
A)  have longer lead times. 
B)  involve orders that have not yet been placed. 
C)  have not been pegged with actual customer orders. 
D)  involve orders that have already been placed. 
E)  involve exceptions to order quantity policies.

Question 5

The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):

Accepted Answer

A)  computers. 
B)  development of the EOQ model. 
C)  inventory control systems. 
D)  blanket purchase orders. 
E)  the Internet. 
A)  computers. 
B)  development of the EOQ model. 
C)  inventory control systems. 
D)  blanket purchase orders. 
E)  the Internet.

Question 6

MRP is used within most MRP II and ERP systems.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following most closely describes dependent demand?

Accepted Answer

A)  demand generated by suppliers 
B)  estimates of demand using regression analysis of independent variables 
C)  derived demand 
D)  demands placed on suppliers by their customers 
E)  net material requirements 
A)  demand generated by suppliers 
B)  estimates of demand using regression analysis of independent variables 
C)  derived demand 
D)  demands placed on suppliers by their customers 
E)  net material requirements

Question 8

The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

Accepted Answer

A) True 
 B)False

Question 9

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, two-period lot-sizing method is used, what will be the quantity of the first planned receipt?

Accepted Answer

A)  60 units 
B)  120 units 
C)  180 units 
D)  cannot be determined 
E)  none of the choices 
A)  60 units 
B)  120 units 
C)  180 units 
D)  cannot be determined 
E)  none of the choices

Question 10

Which of these items would be most likely to have dependent demand?

Accepted Answer

A)  Xbox batteries 
B)  toy trains 
C)  flowers 
D)  chocolate chip cookies 
E)  wrist watches 
A)  Xbox batteries 
B)  toy trains 
C)  flowers 
D)  chocolate chip cookies 
E)  wrist watches

Question 11

Develop a material requirements plan for end item P and its components, given the following tree. Assume that all lead times are one week, and that lot-for-lot ordering is used except for item F, which is ordered in multiples of 400 units.
One hundred units of P should be available at the start of week 4 and at the start of week 8. Beginning inventories are: 20 Ps, 100 As, and 200 Fs.
Scheduled receipts are: 800 Fs at the start of week 1.

Accepted Answer

\[\begin{array} {c} 
{ \text { Planned O

Question 12

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. When should an order for carved chocolate eggs be released?

Accepted Answer

A)  at the start of week 2 
B)  at the start of week 3 
C)  at the start of week 4 
D)  at the start of week 5 
E)  at the start of week 6 
A)  at the start of week 2 
B)  at the start of week 3 
C)  at the start of week 4 
D)  at the start of week 5 
E)  at the start of week 6

Question 13

Net requirements equal gross requirements minus safety stock.

Accepted Answer

A) True 
 B)False

Question 14

Which is true of a net-change system?

Accepted Answer

A)  It is a batch-type system which is updated periodically. 
B)  It is usually run at the beginning of each month. 
C)  The basic production plan is modified to reflect changes as they occur. 
D)  It is used to authorize the execution of planned orders. 
E)  It indicates the amount and timing of future changes. 
A)  It is a batch-type system which is updated periodically. 
B)  It is usually run at the beginning of each month. 
C)  The basic production plan is modified to reflect changes as they occur. 
D)  It is used to authorize the execution of planned orders. 
E)  It indicates the amount and timing of future changes.

Question 15

Using the product tree shown, determine the following:
(A) The quantity of component K that will be needed to assemble 80 units of P, assuming no on-hand inventory of any components exists.
(B) The quantity of component K needed to assemble 80 units of P, given on-hand inventory of 30 As, 50 Bs, and 20 Cs.
[Add closing parens in figure where needed.]

Accepted Answer

(A) [3 Ks per C × 2 Cs per A × 2 As per

Question 16

The inventory records contain information on the status of each item by time period.

Accepted Answer

A) True 
 B)False

Question 17

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

Accepted Answer

A) True 
 B)False

Question 18

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the following most closely describes net material requirements?

Accepted Answer

A)  gross requirements - amount on hand - scheduled receipts 
B)  gross requirements - planned receipts 
C)  gross requirements - order releases + amount on hand 
D)  gross requirements - planned order releases 
E)  gross requirements - amount on hand + planned order releases 
A)  gross requirements - amount on hand - scheduled receipts 
B)  gross requirements - planned receipts 
C)  gross requirements - order releases + amount on hand 
D)  gross requirements - planned order releases 
E)  gross requirements - amount on hand + planned order releases

Question 20

A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

Accepted Answer

A) True 
 B)False

Exam 12: MRP and ERP

In MRP, the gross requirements of a given component part are calculated from:

The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule.

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Scheduled receipts differ from planned receipts in that scheduled receipts:

The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):

MRP is used within most MRP II and ERP systems.

Which of the following most closely describes dependent demand?

The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

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, two-period lot-sizing method is used, what will be the quantity of the first planned receipt?

Which of these items would be most likely to have dependent demand?

Net requirements equal gross requirements minus safety stock.

Which is true of a net-change system?

The inventory records contain information on the status of each item by time period.

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

Which one of the following most closely describes net material requirements?

A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

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

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