Exam 9: Material Requirements Planning

The least unit cost method of lot-sizing 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.

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

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?

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

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

Which of the following is an input to the master production schedule?

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.

If annual demand is 12,000 units,annual holding cost is $15 per unit,and setup cost per order is $25,which of the following is the EOQ lot size?

MRP is a logical,easily understandable approach to the problem of determining the number of parts,components,and materials needed to produce each end item.