Exam 18: Material Requirements Planning

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

One of the outputs of an MRP system is a bill of materials (BOM)file.

In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

In today's modern world of rapid computing and just-in-time replenishment of supplies,freezing the master production schedule is unnecessary.

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot size in which these are most nearly equal?

A BOM file is often called a product structure file or product tree because it enumerates all of the component parts of the end item product.

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

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

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

Use of time fences maintains a reasonably controlled flow through a production system.

MRP II stands for Manufacturing Resource Planning.

MRP is most valuable in industries where a number of products are made in batches using the same productive equipment.

Generally,determining lot sizes in MRP systems is simple.

What is the planned-order release using an MRP program if the gross requirement is 1,600 and the inventory on hand is 600?

MRP is based on dependent demand.

In a typical inventory status record which of the following would you not expect to see?

In a net change MRP program,a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

Explain why "freezing the master schedule" is not the same as reducing the Level of service to customers.

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

Lot-for-lot (L4L)is the most common lot sizing technique.