Question 1

If annual demand is 1,000 units,annual holding cost is $0.50 per unit and the cost per order is $10,what is the EOQ?

Accepted Answer

The answer of If annual demand is 1,000 units,annual holding...

Question 2

A necessary input to the material requirements planning (MRP)system is an exception report.

Accepted Answer

A) True 
 B)False

Question 3

One of the main purposes of a 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 for when each component should be produced 
E) Upgrade manufacturing's professionalism 
A) Track inventory Levels 
B) Create productive capacity 
C) Decrease layers of management 
D) Develop schedules for when each component should be produced 
E) Upgrade manufacturing's professionalism

Question 4

The difference between the number of units currently included in the master schedule and the number of units in firm customer orders is often called "available to promise".

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a capability of MRP systems that improves operations planning and control?

Accepted Answer

A) MRP indicates when to de-expedite as well as expedite orders 
B) MRP systems consume many reams of paper thereby justifying quantity purchases 
C) Once entered;a production order can't be changed,enforcing discipline on sales 
D) MRP can anticipate returns of defective product 
E) MRP allows manufacturing to operate in a pure,isolated environment 
A) MRP indicates when to de-expedite as well as expedite orders 
B) MRP systems consume many reams of paper thereby justifying quantity purchases 
C) Once entered;a production order can't be changed,enforcing discipline on sales 
D) MRP can anticipate returns of defective product 
E) MRP allows manufacturing to operate in a pure,isolated environment

Question 6

The MRP program performs its analysis from the bottom of the product structure trees up,imploding requirements Level by Level.

Accepted Answer

A) True 
 B)False

Question 7

The "theme" of MRP is getting the right materials to the right place before they are needed.

Accepted Answer

A) True 
 B)False

Question 8

A modular bill of materials includes items with fractional options.

Accepted Answer

A) True 
 B)False

Question 9

The least total cost method (LTC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?

Accepted Answer

A) 1,200 
B) 1,300 
C) 1,150 
D) 2,450 
E) None of the above 
A) 1,200 
B) 1,300 
C) 1,150 
D) 2,450 
E) None of the above

Question 11

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) 230 
D) 185 
E) 78 
A) 350 
B) 247 
C) 230 
D) 185 
E) 78

Question 12

A material requirements planning (MRP)system with information feedback from its module outputs is termed a "closed-loop MRP" system.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is one of the main purposes of a MRP system?

Accepted Answer

A) Educate personnel in basic work rules 
B) To determine time schedules for material procurement 
C) Stimulate the work force 
D) Decrease labor requirements 
E) Increase inventory accuracy 
A) Educate personnel in basic work rules 
B) To determine time schedules for material procurement 
C) Stimulate the work force 
D) Decrease labor requirements 
E) Increase inventory accuracy

Question 14

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 15

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

Accepted Answer

A) Fabricate-to-order 
B) Hospitals 
C) Assemble-to-order 
D) Aircraft manufacturers 
E) Oil refineries 
A) Fabricate-to-order 
B) Hospitals 
C) Assemble-to-order 
D) Aircraft manufacturers 
E) Oil refineries

Question 16

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

Accepted Answer

A) 670 
B) 600 
C) 530 
D) 70 
E) None of the above 
A) 670 
B) 600 
C) 530 
D) 70 
E) None of the above

Question 17

MRP systems seek to achieve which of the following?

Accepted Answer

A) Minimize lot sizes 
B) Determine the number of dependent demand items needed 
C) Give immediate capacity relief 
D) Provide a yardstick for future improvements 
E) Improve on JIT methods 
A) Minimize lot sizes 
B) Determine the number of dependent demand items needed 
C) Give immediate capacity relief 
D) Provide a yardstick for future improvements 
E) Improve on JIT methods

Question 18

One of the biggest complaints by users of MRP systems is that MRP is too flexible in making changes in schedules when the need arises.

Accepted Answer

A) True 
 B)False

Question 19

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

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

Exam 18: Material Requirements Planning

If annual demand is 1,000 units,annual holding cost is $0.50 per unit and the cost per order is $10,what is the EOQ?

A necessary input to the material requirements planning (MRP)system is an exception report.

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

The difference between the number of units currently included in the master schedule and the number of units in firm customer orders is often called "available to promise".

Which of the following is a capability of MRP systems that improves operations planning and control?

The MRP program performs its analysis from the bottom of the product structure trees up,imploding requirements Level by Level.

The "theme" of MRP is getting the right materials to the right place before they are needed.

A modular bill of materials includes items with fractional options.

The least total cost method (LTC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?

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 material requirements planning (MRP)system with information feedback from its module outputs is termed a "closed-loop MRP" system.

Which of the following is one of the main purposes of a MRP system?

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

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

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

MRP systems seek to achieve which of the following?

One of the biggest complaints by users of MRP systems is that MRP is too flexible in making changes in schedules when the need arises.

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

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

Introduction to the Field

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