Question 1

Which of the following statements regarding Wheeled Coach is FALSE?

Accepted Answer

A) Wheeled Coach has found competitive advantage through MRP. 
B) Wheeled Coach builds ambulances in a repetitive process. 
C) Wheeled Coach's MRP system allowed the company to meet tight schedules,but caused inventory to rise. 
D) Wheeled Coach's MRP system maintains excellent record integrity. 
E) Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP. 
A) Wheeled Coach has found competitive advantage through MRP. 
B) Wheeled Coach builds ambulances in a repetitive process. 
C) Wheeled Coach's MRP system allowed the company to meet tight schedules,but caused inventory to rise. 
D) Wheeled Coach's MRP system maintains excellent record integrity. 
E) Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP.

Question 2

The time-phased product structure,unlike the bill of material,adds the concept of lead times.

Accepted Answer

A) True 
 B)False

Question 3

A(n)________ provides feedback to the capacity plan,master production schedule,and production plan so planning can be kept valid at all times.

Accepted Answer

closed-loo

Question 4

Which of the following statements best compares modular bills and phantom bills?

Accepted Answer

A) Both pertain to assemblies that are not inventoried. 
B) There is no difference between the two. 
C) Both pertain to assemblies that are inventoried. 
D) Modular bills are used for assemblies that are not inventoried,unlike phantom bills. 
E) Modular bills represent subassemblies that actually exist and are inventoried,while phantom bills represent subassemblies that exist only temporarily and are not inventoried. 
A) Both pertain to assemblies that are not inventoried. 
B) There is no difference between the two. 
C) Both pertain to assemblies that are inventoried. 
D) Modular bills are used for assemblies that are not inventoried,unlike phantom bills. 
E) Modular bills represent subassemblies that actually exist and are inventoried,while phantom bills represent subassemblies that exist only temporarily and are not inventoried.

Question 5

"Phantom bills" are bills of material for subassemblies that do not exist in reality.

Accepted Answer

A) True 
 B)False

Question 6

MRP is an excellent tool for scheduling components with variable lead times.

Accepted Answer

A) True 
 B)False

Question 7

(a)Consider the product structure shown below.Assuming 1 A is to be made,how many units of each of the other items would need to be made?
(b)If there are 20 of every item except A in on-hand inventory,how many As can be assembled?

Accepted Answer

(a)Item B:1,Item C: 3,Item E: 3,Item D:2

Question 8

Consider the following requirements for a certain product.
   Beginning inventory = 500 units
Setup cost = $500 per setup
Lead time = 1 week
Holding cost = $3 per unit per week
a.Develop the lot-for-lot MRP table.
b.Calculate the total relevant costs.

Accepted Answer

There are three setups at $500 each,tota

Question 9

You have seen several methods for lot sizing in MRP.Why is lot sizing important in MRP? Can too much concern be given to lot sizing?

Accepted Answer

Lot sizing is important because,at the v

Question 10

An order for 110 units of Product M has been placed.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.What are the net requirements for N?

Accepted Answer

A) 150 
B) 170 
C) 300 
D) 320 
E) 440 
A) 150 
B) 170 
C) 300 
D) 320 
E) 440

Question 11

Construct a product structure tree for a movie purchased in DVD format.Assume that it contains a single DVD disk.Don't be concerned with artwork-you may use labeled boxes for your parts and assemblies.

Accepted Answer

Not all DVDs are alike in their construc

Question 12

A(n)________ is a bill of material for components,usually subassemblies,that exist only temporarily; they are never inventoried.

Accepted Answer

Phantom bi

Question 13

MRP is generally practiced on items with dependent demand.

Accepted Answer

A) True 
 B)False

Question 14

A(n)________ can illustrate whether a work center has been scheduled beyond its capacity.

Accepted Answer

load repor

Question 15

Enterprise resource planning (ERP):

Accepted Answer

A) seldom requires software upgrade or enhancement. 
B) does not integrate well with functional areas other than operations. 
C) is inexpensive to implement. 
D) automates and integrates the majority of business processes. 
E) all of the above 
A) seldom requires software upgrade or enhancement. 
B) does not integrate well with functional areas other than operations. 
C) is inexpensive to implement. 
D) automates and integrates the majority of business processes. 
E) all of the above

Question 16

Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy.

Accepted Answer

A) True 
 B)False

Question 17

________ is a dependent demand technique that uses a bill of material,inventory,expected receipts,and a master production schedule to determine material requirements.

Accepted Answer

Material r

Question 18

Which lot-sizing technique orders the quantity needed during a predetermined time between orders?

Accepted Answer

A) economic order quantity 
B) periodic order quantity 
C) lot-for-lot 
D) time fencing 
E) part-period balancing 
A) economic order quantity 
B) periodic order quantity 
C) lot-for-lot 
D) time fencing 
E) part-period balancing

Question 19

Consider the following product structure.Forty units of Product A are needed.How many units of B,C,D,E,F,and G are needed?

Accepted Answer

Item B: 40(2)= 80 units; Item

Question 20

Smoothing a resource requirements profile to stay within capacity limits may increase setup costs.

Accepted Answer

A) True 
 B)False

Exam 15: Material Requirements Planning Mrpand Erp

Which of the following statements regarding Wheeled Coach is FALSE?

The time-phased product structure,unlike the bill of material,adds the concept of lead times.

A(n)________ provides feedback to the capacity plan,master production schedule,and production plan so planning can be kept valid at all times.

Which of the following statements best compares modular bills and phantom bills?

"Phantom bills" are bills of material for subassemblies that do not exist in reality.

MRP is an excellent tool for scheduling components with variable lead times.

(a)Consider the product structure shown below.Assuming 1 A is to be made,how many units of each of the other items would need to be made? (b)If there are 20 of every item except A in on-hand inventory,how many As can be assembled?

Consider the following requirements for a certain product. Beginning inventory = 500 units Setup cost = $500 per setup Lead time = 1 week Holding cost = $3 per unit per week a.Develop the lot-for-lot MRP table. b.Calculate the total relevant costs.

You have seen several methods for lot sizing in MRP.Why is lot sizing important in MRP? Can too much concern be given to lot sizing?

An order for 110 units of Product M has been placed.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.What are the net requirements for N?

Construct a product structure tree for a movie purchased in DVD format.Assume that it contains a single DVD disk.Don't be concerned with artwork-you may use labeled boxes for your parts and assemblies.

A(n)________ is a bill of material for components,usually subassemblies,that exist only temporarily; they are never inventoried.

MRP is generally practiced on items with dependent demand.

A(n)________ can illustrate whether a work center has been scheduled beyond its capacity.

Enterprise resource planning (ERP):

Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy.

________ is a dependent demand technique that uses a bill of material,inventory,expected receipts,and a master production schedule to determine material requirements.

Which lot-sizing technique orders the quantity needed during a predetermined time between orders?

Consider the following product structure.Forty units of Product A are needed.How many units of B,C,D,E,F,and G are needed?

Smoothing a resource requirements profile to stay within capacity limits may increase setup costs.

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