Question 1

For the lot-sizing technique known as lot-for-lot to be appropriate:

Accepted Answer

A) future demand should be known for several weeks. 
B) setup cost should be relatively small. 
C) annual volume should be rather low. 
D) item unit cost should be relatively small. 
E) the independent demand rate should be very stable. 
A) future demand should be known for several weeks. 
B) setup cost should be relatively small. 
C) annual volume should be rather low. 
D) item unit cost should be relatively small. 
E) the independent demand rate should be very stable.

Question 2

Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation?

Accepted Answer

A) The material plan must meet both schedule requirements and facility capabilities. 
B) The plan must be executed as designed. 
C) Inventory investment must be minimized. 
D) Excellent record integrity must be maintained. 
E) The process must adhere to stringent quality control standards. 
A) The material plan must meet both schedule requirements and facility capabilities. 
B) The plan must be executed as designed. 
C) Inventory investment must be minimized. 
D) Excellent record integrity must be maintained. 
E) The process must adhere to stringent quality control standards.

Question 3

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

Accepted Answer

Item B: 50(1)= 50 units;Item C

Question 4

(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:

Question 5

________ are the time units in a material requirements planning (MRP)system.

Accepted Answer

The answer of ________ are the time units in a...

Question 6

Reduced inventory levels and faster response to changes in demand are both benefits of MRP.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best describes a gross material requirements plan?

Accepted Answer

A) a schedule that shows total demand for an item,and when it must be ordered from a supplier or when production must be started 
B) an intermediate range plan for the scheduling of families of products 
C) a chart illustrating whether capacity has been exceeded 
D) a table that corrects scheduled quantities for inventory on hand 
E) a schedule showing which products are to be manufactured and in what quantities 
A) a schedule that shows total demand for an item,and when it must be ordered from a supplier or when production must be started 
B) an intermediate range plan for the scheduling of families of products 
C) a chart illustrating whether capacity has been exceeded 
D) a table that corrects scheduled quantities for inventory on hand 
E) a schedule showing which products are to be manufactured and in what quantities

Question 8

Consider the following product structure.   If the demand for product A is 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?

Accepted Answer

A) 3 
B) 40 
C) 70 
D) 90 
E) 110 
A) 3 
B) 40 
C) 70 
D) 90 
E) 110

Question 9

Describe the tactics for load smoothing in MRP.

Accepted Answer

Overlapping-sends pieces to the second o

Question 10

Gross material requirements do not take into account the amount of inventory on hand.

Accepted Answer

A) True 
 B)False

Question 11

What is one of the tools that is particularly useful in reducing system nervousness in an MRP system?

Accepted Answer

A) modular bills 
B) time phasing 
C) time fences 
D) lot sizing 
E) closed loop system 
A) modular bills 
B) time phasing 
C) time fences 
D) lot sizing 
E) closed loop system

Question 12

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 13

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 14

A working MRP system allows a firm to react to even minor changes in production requirements.Discuss both the advantage and disadvantage of having such ability.

Accepted Answer

The advantage is that it allows the firm

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?

Accepted Answer

A) The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. 
B) The quantity of gross requirements for a child item is equal to the quantity of planned order release(s)multiplied by the number of child items used in the parent assembly. 
C) The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. 
D) The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. 
E) All of the above are true. 
A) The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. 
B) The quantity of gross requirements for a child item is equal to the quantity of planned order release(s)multiplied by the number of child items used in the parent assembly. 
C) The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. 
D) The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. 
E) All of the above are true.

Question 17

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 18

A dependent demand item is so called because its demand is dependent on customer preferences.

Accepted Answer

A) True 
 B)False

Question 19

________ 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 20

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

Exam 14: Material Requirements Planning Mrpand ERP

For the lot-sizing technique known as lot-for-lot to be appropriate:

Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation?

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

(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?

________ are the time units in a material requirements planning (MRP)system.

Reduced inventory levels and faster response to changes in demand are both benefits of MRP.

Which of the following best describes a gross material requirements plan?

Consider the following product structure. If the demand for product A is 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?

Describe the tactics for load smoothing in MRP.

Gross material requirements do not take into account the amount of inventory on hand.

What is one of the tools that is particularly useful in reducing system nervousness in an MRP system?

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.

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

A working MRP system allows a firm to react to even minor changes in production requirements.Discuss both the advantage and disadvantage of having such ability.

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

Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?

Which of the following statements regarding Wheeled Coach is FALSE?

A dependent demand item is so called because its demand is dependent on customer preferences.

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

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?

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