Question 1

Which of the following statements about service resource planning is True?

Accepted Answer

A)  The service analogy to the BOM in a manufacturing company is a bill of lading (BOL). 
B)  One resource that every service provider manages is cash. 
C)  There is no such thing as dependent demand in the service sector. 
D)  As services are completed, the accounts receivable decrease.

Question 2

A front-office module for an ERP system includes:

Accepted Answer

A)  manufacturing. 
B)  accounting and finance. 
C)  sales and marketing. 
D)  human resources.

Question 3

Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.
 
-Use Table 11.1 to answer this question. After scoring a terrific deal on tortillas, Big Truck Tacos decides to produce 120 tacos in weeks 1, 2, and 3. If they make tacos in batches of 20, what should their MPS entry be for the fifth week of production?

Accepted Answer

A)  60 
B)  80 
C)  100 
D)  120

Question 4

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

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

Question 5

A materials requirements planning (MRP) explosion occurs when the system is bombarded with too many orders to schedule at one time.

Accepted Answer

A) True 
 B)False

Question 6

What information can be gleaned from a bill of materials? If you were asked to produce an item based solely on a copy of its BOM, what missing information would you need?

Accepted Answer

The answer of What information can be gleaned from a...

Question 7

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 8

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)

Question 9

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

Accepted Answer

A)  30, 0, 60, 0, 145 
B)  60, 0, 145, 0, 0 
C)  0, 30, 60, 0, 0 
D)  30, 0, 60, 145, 0

Question 10

Scenario 11.2

Inventory amounts indicated in the table are available to produce the end item indicated in this bill of materials.
-Use Scenario 11.2 to answer this question. How many additional units of D are needed to produce seven end items?

Accepted Answer

A)  40 
B)  22 
C)  68 
D)  10

Question 11

Any item manufactured from one or more components is a(n):

Accepted Answer

A)  parent. 
B)  component. 
C)  intermediate item. 
D)  purchased item.

Question 12

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Accepted Answer

A) True 
 B)False

Question 13

Complete the following MRP record using the FOQ rule:

Accepted Answer

The answer of Complete the following MRP record using the...

Question 14

Operations produces a number of items in one production period. Those items that are not produced for a specific customer order are ________.

Accepted Answer

The answer of Operations produces a number of items in...

Question 15

Gross requirements are the total demand derived from all parent production plans.

Accepted Answer

A) True 
 B)False

Question 16

MRP ________ is a process that converts the requirements of various final products into a material requirements plan that specifies the replenishment schedule of all the subassemblies, components, and raw materials needed by the final products.

Accepted Answer

The answer of MRP ________ is a process that converts...

Question 17

Use the bill of materials and inventory records to determine the additional quantities of purchased items necessary to assemble 15 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 18

What is the explosion of the MPS and what are the outputs?

Accepted Answer

The answer of What is the explosion of the MPS...

Question 19

Management wishes to use an FOQ lot-sizing rule for an item based on the economic order quantity. If the annual demand is 1,200 units, the holding cost is $10 per unit per year, and the setup cost is $50 per lot, which one of the following fixed-order quantities is most appropriate?

Accepted Answer

A)  90 units 
B)  110 units 
C)  130 units 
D)  150 units

Question 20

Complete the following MRP record using the L4L rule:

Accepted Answer

The answer of Complete the following MRP record using the...

Exam 11: Resource Planning

Which of the following statements about service resource planning is True?

A front-office module for an ERP system includes:

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.

A materials requirements planning (MRP) explosion occurs when the system is bombarded with too many orders to schedule at one time.

What information can be gleaned from a bill of materials? If you were asked to produce an item based solely on a copy of its BOM, what missing information would you need?

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.

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

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

Scenario 11.2 Inventory amounts indicated in the table are available to produce the end item indicated in this bill of materials. -Use Scenario 11.2 to answer this question. How many additional units of D are needed to produce seven end items?

Any item manufactured from one or more components is a(n) :

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Complete the following MRP record using the FOQ rule:

Operations produces a number of items in one production period. Those items that are not produced for a specific customer order are ________.

Gross requirements are the total demand derived from all parent production plans.

MRP ________ is a process that converts the requirements of various final products into a material requirements plan that specifies the replenishment schedule of all the subassemblies, components, and raw materials needed by the final products.

What is the explosion of the MPS and what are the outputs?

Management wishes to use an FOQ lot-sizing rule for an item based on the economic order quantity. If the annual demand is 1,200 units, the holding cost is $10 per unit per year, and the setup cost is $50 per lot, which one of the following fixed-order quantities is most appropriate?

Complete the following MRP record using the L4L rule: