Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements regarding the gross material requirements plan is TRUE?

Accepted Answer

A) It shows total demand for an item. 
B) It shows when an item must be ordered from a supplier or when production must be started. 
C) It combines a master production schedule with the time-phased schedule. 
D) It requires several inputs,including an accurate bill of material. 
E) All of the above are true. 
A) It shows total demand for an item. 
B) It shows when an item must be ordered from a supplier or when production must be started. 
C) It combines a master production schedule with the time-phased schedule. 
D) It requires several inputs,including an accurate bill of material. 
E) All of the above are true.

Question 3

Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique?

Accepted Answer

Both methods produce a balance between s

Question 4

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

Accepted Answer

(1)Master production schedule (what is t

Question 5

In MRP,system nervousness is caused by:

Accepted Answer

A) management's attempt to continually respond to minor changes in production requirements. 
B) the use of the lot-for-lot approach. 
C) management's marking part of the master production schedule as "not to be rescheduled". 
D) the use of phantom bills of material. 
E) management's attempt to evaluate alternative plans before making a decision. 
A) management's attempt to continually respond to minor changes in production requirements. 
B) the use of the lot-for-lot approach. 
C) management's marking part of the master production schedule as "not to be rescheduled". 
D) the use of phantom bills of material. 
E) management's attempt to evaluate alternative plans before making a decision.

Question 6

MRP is generally applicable to items with dependent demand.

Accepted Answer

A) True 
 B)False

Question 7

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 C

Question 8

In MRP,the number of units projected to be available at the beginning of each time period refers to:

Accepted Answer

A) net requirements. 
B) scheduled receipts. 
C) planned order releases. 
D) projected on hand. 
E) the amount necessary to cover a shortage. 
A) net requirements. 
B) scheduled receipts. 
C) planned order releases. 
D) projected on hand. 
E) the amount necessary to cover a shortage.

Question 9

An order has been placed for 50 units of Product A and 60 units of Product B.There are currently 35 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.
(a)Calculate the net requirements for B.
(b)Calculate the gross requirements for C.
(c)Calculate the net requirements for C.

Accepted Answer

(a)60 - 35 = 25; (b)

Question 10

A manufacturing company is trying to determine the cost of materials used to produce an A.If Fs cost $1 and Ds cost $2 how much does it cost to produce an A (in F and D materials only)?

Accepted Answer

Using the explosion shows that

Question 11

The minimum record accuracy required for successful MRP is approximately which of the following?

Accepted Answer

A) lower than 90% 
B) 90% 
C) 95% 
D) 97% 
E) 99% 
A) lower than 90% 
B) 90% 
C) 95% 
D) 97% 
E) 99%

Question 12

In MRP,a "bucket" refers to a fixed order quantity,such as an EOQ.

Accepted Answer

A) True 
 B)False

Question 13

An order for 110 units of Product A has been placed.There are currently 60 units of Product A on hand.Each A requires 4 units of Part B.There are 20 units of B available.What are the net requirements for B?

Accepted Answer

A) 20 
B) 120 
C) 180 
D) 240 
E) 440 
A) 20 
B) 120 
C) 180 
D) 240 
E) 440

Question 14

Dependent demand and independent demand items differ in that:

Accepted Answer

A) for any product,all components are dependent-demand items. 
B) the need for independent-demand items is forecast. 
C) the need for dependent-demand items is calculated. 
D) All of the above are true. 
E) None of the above is true. 
A) for any product,all components are dependent-demand items. 
B) the need for independent-demand items is forecast. 
C) the need for dependent-demand items is calculated. 
D) All of the above are true. 
E) None of the above is true.

Question 15

If X consists of one A and one B,and each A consists of one F and two Gs,then A is the "parent" component of G.

Accepted Answer

A) True 
 B)False

Question 16

An order for 110 units of Product A has been made.There are currently 60 units of Product A on hand.Each A requires 2 units of Part B.There are 30 units of B available.
(a)Calculate the net requirements for A.
(b)Calculate the gross requirements for B.
(c)Calculate the net requirements for B.

Accepted Answer

(a)110 - 60 = 50; (b

Question 17

Which MRP lot-sizing technique should be considered to be the goal (i.e. ,the technique of choice under ideal conditions)?

Accepted Answer

A) Wagner-Whitin 
B) EOQ 
C) lot-for-lot 
D) POQ 
E) Silver-Meal 
A) Wagner-Whitin 
B) EOQ 
C) lot-for-lot 
D) POQ 
E) Silver-Meal

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

In general,the lot-for-lot approach should be used whenever economical.

Accepted Answer

A) True 
 B)False

Question 20

MRP can be effective only if very accurate lot sizes are calculated in advance.

Accepted Answer

A) True 
 B)False

Exam 14: Material Requirements Planning Mrpand ERP

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

Which of the following statements regarding the gross material requirements plan is TRUE?

Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique?

What information is necessary for an operations manager to make effective use of a dependent inventory demand model?

In MRP,system nervousness is caused by:

MRP is generally applicable to items with dependent demand.

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?

In MRP,the number of units projected to be available at the beginning of each time period refers to:

A manufacturing company is trying to determine the cost of materials used to produce an A.If Fs cost $1 and Ds cost $2 how much does it cost to produce an A (in F and D materials only)?

The minimum record accuracy required for successful MRP is approximately which of the following?

In MRP,a "bucket" refers to a fixed order quantity,such as an EOQ.

An order for 110 units of Product A has been placed.There are currently 60 units of Product A on hand.Each A requires 4 units of Part B.There are 20 units of B available.What are the net requirements for B?

Dependent demand and independent demand items differ in that:

If X consists of one A and one B,and each A consists of one F and two Gs,then A is the "parent" component of G.

An order for 110 units of Product A has been made.There are currently 60 units of Product A on hand.Each A requires 2 units of Part B.There are 30 units of B available. (a)Calculate the net requirements for A. (b)Calculate the gross requirements for B. (c)Calculate the net requirements for B.

Which MRP lot-sizing technique should be considered to be the goal (i.e. ,the technique of choice under ideal conditions)?

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

In general,the lot-for-lot approach should be used whenever economical.

MRP can be effective only if very accurate lot sizes are calculated in advance.

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