Question 1

Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000 and the inventory on hand is 1,200?

Accepted Answer

A) 5,000 
B) 4,500 
C) 3,800 
D) 1,200 
E) None of the above 
A) 5,000 
B) 4,500 
C) 3,800 
D) 1,200 
E) None of the above

Question 2

An MRP program with a capacity requirements planning module allows rescheduling to try to Level capacity.

Accepted Answer

A) True 
 B)False

Question 3

Computing the quantity of each component that goes into a finished product requires expanding (or exploding)each item in a product structure file and summing at all Levels.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following can be used for lot sizing in an MRP system?

Accepted Answer

A) Low-Level coding 
B) Time buckets 
C) Least unit cost 
D) Inventory record files 
E) Peg reports 
A) Low-Level coding 
B) Time buckets 
C) Least unit cost 
D) Inventory record files 
E) Peg reports

Question 6

"Available to promise" is a term referring to unsold finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 7

Objectives of inventory management under an MRP system include which of the following?

Accepted Answer

A) Improve customer service 
B) Reduce the cost of capital 
C) Calibrate operating efficiencies 
D) Minimize lot sizes 
E) Reduce inventory to zero 
A) Improve customer service 
B) Reduce the cost of capital 
C) Calibrate operating efficiencies 
D) Minimize lot sizes 
E) Reduce inventory to zero

Question 8

What is the name for demand caused by the demand for a higher Level item?

Accepted Answer

The answer of What is the name for demand caused...

Question 9

The least unit cost method (LUC)of lot-sizing technique adds ordering,stock-out 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

Net change MRP reflects the exact status of each item managed by the system in "real time".
Goal: 3

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a major reason that some MRP systems fail?

Accepted Answer

A) Lack of top management understanding and commitment 
B) Failure to properly install the MRP software 
C) Using an underpowered computer 
D) Technical incompetence in manufacturing 
E) Vendors or customers using JIT systems 
A) Lack of top management understanding and commitment 
B) Failure to properly install the MRP software 
C) Using an underpowered computer 
D) Technical incompetence in manufacturing 
E) Vendors or customers using JIT systems

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

An improvement noted by many firms after implementation of MRP is which of the following?

Accepted Answer

A) Increased prices 
B) Increased inventory 
C) Improved customer service 
D) Reduced raw materials cost 
E) Enhanced employee relations 
A) Increased prices 
B) Increased inventory 
C) Improved customer service 
D) Reduced raw materials cost 
E) Enhanced employee relations

Question 15

Developing the master production schedule is done by disaggregating the aggregate production plan.

Accepted Answer

A) True 
 B)False

Question 16

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 17

MRP stands for Manufacturing Requirements Planning.

Accepted Answer

A) True 
 B)False

Question 18

Net change MRP systems are "activity" driven.

Accepted Answer

A) True 
 B)False

Question 19

In MRP,how is demand information for a Level 0 (zero)item derived?

Accepted Answer

Falserom t

Question 20

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

Exam 18: Material Requirements Planning

Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000 and the inventory on hand is 1,200?

An MRP program with a capacity requirements planning module allows rescheduling to try to Level capacity.

Computing the quantity of each component that goes into a finished product requires expanding (or exploding)each item in a product structure file and summing at all Levels.

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

Which of the following can be used for lot sizing in an MRP system?

"Available to promise" is a term referring to unsold finished goods inventory.

Objectives of inventory management under an MRP system include which of the following?

What is the name for demand caused by the demand for a higher Level item?

The least unit cost method (LUC)of lot-sizing technique adds ordering,stock-out 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.

Net change MRP reflects the exact status of each item managed by the system in "real time". Goal: 3

Which of the following is a major reason that some MRP systems fail?

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

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

An improvement noted by many firms after implementation of MRP is which of the following?

Developing the master production schedule is done by disaggregating the aggregate production plan.

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

MRP stands for Manufacturing Requirements Planning.

Net change MRP systems are "activity" driven.

In MRP,how is demand information for a Level 0 (zero)item derived?

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

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