Question 1

The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.

Accepted Answer

A) True 
 B)False

Question 2

What does enterprise resource planning (ERP)allow an organization to do?

Accepted Answer

It allows the organization to automate a

Question 3

Which of the following is FALSE concerning enterprise resource planning (ERP)?

Accepted Answer

A) It attempts to automate and integrate the majority of business processes. 
B) It shares common data and practices across the enterprise. 
C) It is inexpensive to implement. 
D) It provides and accesses information in a real-time environment. 
E) ERP software promises reduced transaction costs. 
A) It attempts to automate and integrate the majority of business processes. 
B) It shares common data and practices across the enterprise. 
C) It is inexpensive to implement. 
D) It provides and accesses information in a real-time environment. 
E) ERP software promises reduced transaction costs.

Question 4

If safety stock is desired,it should be built into which portion of MRP?

Accepted Answer

A) module level 
B) purchased component 
C) raw materials 
D) finished goods 
E) all of the above 
A) module level 
B) purchased component 
C) raw materials 
D) finished goods 
E) all of the above

Question 5

By convention,the top level in a product structure is designated level 1.

Accepted Answer

A) True 
 B)False

Question 6

Four A washers,five B washers,two C bolts,and a D bolt are required to make one grill parts kit.If 100 grill parts kits are needed,how many more washers will be consumed than bolts?

Accepted Answer

Using MRP explosion gives A =

Question 7

Distortion in MRP systems can be minimized when safety stock is held at the:

Accepted Answer

A) purchased component or raw material level. 
B) work-in-process level. 
C) finished goods level. 
D) A and B 
E) A and C 
A) purchased component or raw material level. 
B) work-in-process level. 
C) finished goods level. 
D) A and B 
E) A and C

Question 8

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

Accepted Answer

A) True 
 B)False

Question 9

________ is a system that allows,with MRP in place,inventory data to be augmented by other resource variables.

Accepted Answer

Material requirement

Question 10

What are time fences? Why are they used?

Accepted Answer

Time fences allow a segment of

Question 11

Which of the following is NOT a key benefit of MRP?

Accepted Answer

A) increased quality 
B) better response to customer orders 
C) faster response to market changes 
D) improved utilization of facilities and labor 
E) reduced inventory levels 
A) increased quality 
B) better response to customer orders 
C) faster response to market changes 
D) improved utilization of facilities and labor 
E) reduced inventory levels

Question 12

Product A is made from 2 Bs and 1 C.Lead times for A,B,and C are 2,3,and 2 weeks respectively.Currently there are 2 Bs and a 5 Cs on hand,with 5 of each scheduled to arrive at the end of week 1.If 20 As are needed during week 4,can the order be completed (it is the start of week 0 currently)?

Accepted Answer

To produce 20 As requires 40 B

Question 13

Consider the following product structure.   If the demand for product A is 50 units,how many units of component E will be needed?

Accepted Answer

A) 4 
B) 100 
C) 200 
D) 250 
E) 300 
A) 4 
B) 100 
C) 200 
D) 250 
E) 300

Question 14

What do we mean by closed-loop MRP?

Accepted Answer

It's a system that provides fe

Question 15

Demand for a given item is said to be dependent if:

Accepted Answer

A) it originates from the external customer. 
B) there is a deep bill of material. 
C) the finished products are mostly services (rather than goods). 
D) there is a clearly identifiable parent. 
E) the item has several children. 
A) it originates from the external customer. 
B) there is a deep bill of material. 
C) the finished products are mostly services (rather than goods). 
D) there is a clearly identifiable parent. 
E) the item has several children.

Question 16

An order for 50 units of Product A and 60 of B has been placed.There are currently 25 units of Product B on hand.Each A requires 2 units of Part C;each B requires 5 units of C.There are 160 units of C available.What are the net requirements for C?

Accepted Answer

A) 115 
B) 175 
C) 240 
D) 690 
E) 700 
A) 115 
B) 175 
C) 240 
D) 690 
E) 700

Question 17

What does the POQ interval equal?

Accepted Answer

A) the number of periods of average demand covered by the safety stock 
B) the same number of periods that are on the "not to be rescheduled" side of the time fence 
C) EOQ / maximum gross requirement 
D) the number of periods until the incoming projected on hand runs out 
E) EOQ / average demand per period 
A) the number of periods of average demand covered by the safety stock 
B) the same number of periods that are on the "not to be rescheduled" side of the time fence 
C) EOQ / maximum gross requirement 
D) the number of periods until the incoming projected on hand runs out 
E) EOQ / average demand per period

Question 18

MRP II is accurately described as:

Accepted Answer

A) MRP software designed for services. 
B) MRP with a new set of computer programs that execute on microcomputers. 
C) material resource planning. 
D) an enhancement of MRP that plans for all levels of the supply chain. 
E) a new generation of MRP software that extends MRP to planning and scheduling functions. 
A) MRP software designed for services. 
B) MRP with a new set of computer programs that execute on microcomputers. 
C) material resource planning. 
D) an enhancement of MRP that plans for all levels of the supply chain. 
E) a new generation of MRP software that extends MRP to planning and scheduling functions.

Question 19

Describe the role of record accuracy in Wheeled Coach's successful use of MRP.

Accepted Answer

Wheeled Coach's record integrity is exce

Question 20

Firms may discover that,rather than adapting ERP to the way they do business,they have to adapt the way they do business to accommodate the ERP software.

Accepted Answer

A) True 
 B)False

Exam 14: Material Requirements Planning Mrpand ERP

The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.

What does enterprise resource planning (ERP)allow an organization to do?

Which of the following is FALSE concerning enterprise resource planning (ERP)?

If safety stock is desired,it should be built into which portion of MRP?

By convention,the top level in a product structure is designated level 1.

Four A washers,five B washers,two C bolts,and a D bolt are required to make one grill parts kit.If 100 grill parts kits are needed,how many more washers will be consumed than bolts?

Distortion in MRP systems can be minimized when safety stock is held at the:

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

________ is a system that allows,with MRP in place,inventory data to be augmented by other resource variables.

What are time fences? Why are they used?

Which of the following is NOT a key benefit of MRP?

Product A is made from 2 Bs and 1 C.Lead times for A,B,and C are 2,3,and 2 weeks respectively.Currently there are 2 Bs and a 5 Cs on hand,with 5 of each scheduled to arrive at the end of week 1.If 20 As are needed during week 4,can the order be completed (it is the start of week 0 currently)?

Consider the following product structure. If the demand for product A is 50 units,how many units of component E will be needed?

What do we mean by closed-loop MRP?

Demand for a given item is said to be dependent if:

An order for 50 units of Product A and 60 of B has been placed.There are currently 25 units of Product B on hand.Each A requires 2 units of Part C;each B requires 5 units of C.There are 160 units of C available.What are the net requirements for C?

What does the POQ interval equal?

MRP II is accurately described as:

Describe the role of record accuracy in Wheeled Coach's successful use of MRP.

Firms may discover that,rather than adapting ERP to the way they do business,they have to adapt the way they do business to accommodate the ERP software.

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