Question 1

ERP revolves around a(n)________.

Accepted Answer

The answer of ERP revolves around a(n)________....

Question 2

Use the bill of materials and inventory records to determine the additional quantities of purchased items necessary to assemble 20 end items if the manufacturer uses lot-for-lot ordering.There are no end items currently on hand,and none of the components have any scheduled receipts.     Inventory amounts indicated in the table are available to produce the end item indicated in this bill of materials.

Accepted Answer

The answer of Use the bill of materials and inventory...

Question 3

Which of the following statements about MRP II is best?

Accepted Answer

A) It is computationally faster than regular MRP. 
B) It is limited only to aiding order-launching decisions. 
C) It incorporates informal systems through the use of expert systems technology. 
D) It provides more extensive information than MRP because it is tied to the company's financial system. 
A) It is computationally faster than regular MRP. 
B) It is limited only to aiding order-launching decisions. 
C) It incorporates informal systems through the use of expert systems technology. 
D) It provides more extensive information than MRP because it is tied to the company's financial system.

Question 4

A component is an item that may go through one or more operations to be transformed into or become part of one or more parents.

Accepted Answer

A) True 
 B)False

Question 5

The master production schedule (MPS)is the part of the material requirements planning that specifies when components must be ordered or assembled.

Accepted Answer

A) True 
 B)False

Question 6

________ is an estimate of the amount of inventory available each week after gross requirements have been satisfied.

Accepted Answer

Projected

Question 7

Case Study 16.1
Sunshine Manufacturing produces three products: X,Y,Z.The production of these end items is controlled by an MRP system.Each end item X is assembled with two components of A and one component of B.Each end item of Y is assembled with two components of C and one component of A.End item Z is assembled from one unit of D and one unit of C;D is manufactured from one unit of A;and C is manufactured from one unit of B.
-Use the information in Case Study 16.1.If item C has a manufacturing lead time of two weeks,and a planned receipt of 65 units is needed in week 4,which of the following statements is TRUE?

Accepted Answer

A) The planned order release in week 2 for item C is 130 units. 
B) The gross requirements for item B in week 4 is 65 units. 
C) The gross requirements for item B in week 2 is 130 units. 
D) The gross requirements for item B in week 2 is 65 units. 
A) The planned order release in week 2 for item C is 130 units. 
B) The gross requirements for item B in week 4 is 65 units. 
C) The gross requirements for item B in week 2 is 130 units. 
D) The gross requirements for item B in week 2 is 65 units.

Question 8

Table 16.4
Consider the following MPS,BOM,and inventory data.Blank MRP records are provided at the end of this exam.
Master Production Schedule: The following table shows the MPS start quantities.   Bill of Material
-End item A uses 1 each of component C and 1 each of subassembly D.
-Subassembly D uses 2 each of component E and 2 each of component F.
-End item B uses 1 each of component C and 2 each of component F.
Selected Inventory Data  
-Use the information in Table 16.4.Which one of the following statements about item E is TRUE?

Accepted Answer

A) There are no planned order releases in weeks 1 though week 6. 
B) There is a planned receipt of 250 units in week 2. 
C) There is one planned receipt for the next 6 weeks. 
D) There is a planned order release of 250 units in week 3. 
A) There are no planned order releases in weeks 1 though week 6. 
B) There is a planned receipt of 250 units in week 2. 
C) There is one planned receipt for the next 6 weeks. 
D) There is a planned order release of 250 units in week 3.

Question 9

Part commonality tends to increase inventory costs.

Accepted Answer

A) True 
 B)False

Question 10

The projected on-hand inventory in the MPS takes into account scheduled receipts,but not planned receipts.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following uses of MRP in promoting a healthy environment is NOT used?

Accepted Answer

A) An MRP system can track waste in a bill of materials as a component of an item. 
B) When the master production schedule is developed for a product,reports can be generated that project the quantity of waste. 
C) When the master production schedule is developed for a product,reports can be generated that project the timing of waste. 
D) The MRP system can be used to communicate directly with the International Organization for Standardization to file ISO 9000 documentation. 
A) An MRP system can track waste in a bill of materials as a component of an item. 
B) When the master production schedule is developed for a product,reports can be generated that project the quantity of waste. 
C) When the master production schedule is developed for a product,reports can be generated that project the timing of waste. 
D) The MRP system can be used to communicate directly with the International Organization for Standardization to file ISO 9000 documentation.

Question 12

Table 16.2  
-Use the following partially completed MRP record to answer the question.   What are the quantities of planned order releases for item XYZ for the first six weeks (weeks 1,2,3,4,5,and 6)?

Accepted Answer

A) 20,30,0,40,20,0 
B) 35,0,60,0,0,0 
C) 5,30,0,40,20,0 
D) 35,0,0,40,20,0 
A) 20,30,0,40,20,0 
B) 35,0,60,0,0,0 
C) 5,30,0,40,20,0 
D) 35,0,0,40,20,0

Question 13

Which one of the following statements about lot-sizing rules is TRUE?

Accepted Answer

A) The periodic order quantity (POQ)rule seeks to create inventory remnants. 
B) If the POQ rule is used,an item's lot size can vary each time an order is placed. 
C) The lot-for-lot (L4L)rule is a special case of the fixed-order quantity (FOQ)rule. 
D) All lot-sizing rules seek to minimize inventory levels. 
A) The periodic order quantity (POQ)rule seeks to create inventory remnants. 
B) If the POQ rule is used,an item's lot size can vary each time an order is placed. 
C) The lot-for-lot (L4L)rule is a special case of the fixed-order quantity (FOQ)rule. 
D) All lot-sizing rules seek to minimize inventory levels.

Question 14

The portion of the master production schedule farthest into the future is often frozen to reduce forecasting requirements.

Accepted Answer

A) True 
 B)False

Question 15

MRP II ties MRP to the company's financial system.

Accepted Answer

A) True 
 B)False

Question 16

Lot-for-lot (L4L)is a rule that maintains the same order quantity each time an order is issued.

Accepted Answer

A) True 
 B)False

Question 17

Use the bill of materials and inventory records to determine the quantity of purchased items necessary to assemble 20 end items if the manufacturer uses lot-for-lot ordering.There are no end items currently on hand,and none of the components have any scheduled receipts.

Accepted Answer

20 End Items → 40 As less 5 on hand → 35

Question 18

Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount of average inventory?

Accepted Answer

A) periodic order quantity (POQ),with P = 2 
B) fixed order quantity (FOQ) 
C) economic order quantity (EOQ) 
D) lot for lot (L4L) 
A) periodic order quantity (POQ),with P = 2 
B) fixed order quantity (FOQ) 
C) economic order quantity (EOQ) 
D) lot for lot (L4L)

Question 19

Available-to-promise (ATP)quantities are only shown in the first period (if the projected on-hand inventory is greater than zero in the first period),and subsequently in periods when the MPS quantity is greater than 0.

Accepted Answer

A) True 
 B)False

Question 20

Table 16.6  
-Use the information from Table 16.6.If an L4L lot-sizing rule is used,how many planned order releases are there for item XYZ? (Hint: The 80-unit scheduled receipt should remain unchanged,because it has already been released and is being worked on. )

Accepted Answer

A) zero or one 
B) two 
C) three 
D) more than three 
A) zero or one 
B) two 
C) three 
D) more than three

Exam 16: Resource Planning

ERP revolves around a(n)________.

Which of the following statements about MRP II is best?

A component is an item that may go through one or more operations to be transformed into or become part of one or more parents.

The master production schedule (MPS)is the part of the material requirements planning that specifies when components must be ordered or assembled.

________ is an estimate of the amount of inventory available each week after gross requirements have been satisfied.

Part commonality tends to increase inventory costs.

The projected on-hand inventory in the MPS takes into account scheduled receipts,but not planned receipts.

Which of the following uses of MRP in promoting a healthy environment is NOT used?

Table 16.2 -Use the following partially completed MRP record to answer the question. What are the quantities of planned order releases for item XYZ for the first six weeks (weeks 1,2,3,4,5,and 6)?

Which one of the following statements about lot-sizing rules is TRUE?

The portion of the master production schedule farthest into the future is often frozen to reduce forecasting requirements.

MRP II ties MRP to the company's financial system.

Lot-for-lot (L4L)is a rule that maintains the same order quantity each time an order is issued.

Use the bill of materials and inventory records to determine the quantity of purchased items necessary to assemble 20 end items if the manufacturer uses lot-for-lot ordering.There are no end items currently on hand,and none of the components have any scheduled receipts.

Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount of average inventory?

Available-to-promise (ATP)quantities are only shown in the first period (if the projected on-hand inventory is greater than zero in the first period),and subsequently in periods when the MPS quantity is greater than 0.

Table 16.6 -Use the information from Table 16.6.If an L4L lot-sizing rule is used,how many planned order releases are there for item XYZ? (Hint: The 80-unit scheduled receipt should remain unchanged,because it has already been released and is being worked on. )

Using Operations to Compete

Project Management

Process Strategy

Process Analysis

Quality and Performance

Capacity Planning

Constraint Management

Lean Systems

Supply Chain Inventory Management

Supply Chain Design

Supply Chain Location Decisions

Supply Chain Integration

Supply Chain Sustainability and Humanitarian Logistics

Forecasting

Operations Planning and Scheduling

Decision Making

Waiting Line

Special Inventory Models

Linear Programming

Simulation

Financial Analysis

Acceptance Sampling Plans

Measuring Output Rates

Learning Curve Analysis

Operations Scheduling

Filters