Question 1

Lead times,inventory availability,and purchase orders outstanding are among the five things operations managers must know for effective use of dependent inventory models.

Accepted Answer

A) True 
 B)False

Question 2

By convention,what is the top level in a product structure?

Accepted Answer

A) level 0 
B) level 1 
C) level T 
D) level 10 
E) level 100

Question 3

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

Accepted Answer

The answer of Consider the following product structure.Fifty units of...

Question 4

Consider the bill of material for Product J and the data given in the following table.The gross requirements for J are 200 units in week 6 and 250 units in week 8.Develop the MRP tables for each item for an 8-week planning period.Use the lot-for-lot lot-sizing rule.

Accepted Answer

The answer of Consider the bill of material for Product...

Question 5

Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity.

Accepted Answer

A) True 
 B)False

Question 6

DRP is a time-phased stock-replenishment plan for all levels of a distribution network.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements regarding MRP in services is TRUE?

Accepted Answer

A) MRP is for manufacturing only,and it is not applicable to services. 
B) MRP can be used in services,but only in those that offer very limited customization. 
C) MRP only works in services for demand that is independent. 
D) Services such as restaurant meals illustrate dependent demand,and they require product structure trees,bills-of-material,and scheduling. 
E) None of the above is true.

Question 8

A(n)________ system is packaged business software that automates and integrates the majority of business processes,shares common data and practices across the entire enterprise,and produces information in a real-time environment.

Accepted Answer

The answer of A(n)________ system is packaged business software that...

Question 9

An order for 120 units of Product M has been made.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.
(a)Calculate the net requirements for M.
(b)Calculate the gross requirements for N.
(c)Calculate the net requirements for N.

Accepted Answer

The answer of An order for 120 units of Product...

Question 10

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Accepted Answer

A) lot-for-lot 
B) EOQ 
C) POQ 
D) the Wagner-Whitin algorithm 
E) All of the above are appropriate for the situation.

Question 11

Bills of material organized by major subassemblies or by product options are called ________.

Accepted Answer

The answer of Bills of material organized by major subassemblies...

Question 12

Which of the following lot-sizing techniques results in the lowest holding costs?

Accepted Answer

A) lot-for-lot 
B) EOQ 
C) POQ 
D) Wagner-Whitin algorithm 
E) the quantity discount model

Question 13

What is DRP?

Accepted Answer

The answer of What is DRP?...

Question 14

A paint company mixes ten different base colors into 3,000 different color options.If production scheduling is organized around the ten different base colors ,then the bills of material are classified as which of the following?

Accepted Answer

A) phantom 
B) planning 
C) modular 
D) low-level 
E) A and B

Question 15

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

Accepted Answer

A) True 
 B)False

Question 16

Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts.The holding cost for that item is $.75 per month and each setup costs $150.Lead time is 0 months.Calculate the planned order releases using: (a)the EOQ technique,and (b)the POQ technique.
What are the costs of each plan,including the holding cost of any inventory left over after month 7?

Accepted Answer

The answer of Clancy's Motors has the following demand to...

Question 17

________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

Accepted Answer

The answer of ________ are the result of adjusting gross...

Question 18

Enterprise resource planning (ERP):

Accepted Answer

A) seldom requires software upgrade or enhancement. 
B) does not integrate well with functional areas other than operations. 
C) is inexpensive to implement. 
D) automates and integrates the majority of business processes. 
E) all of the above

Question 19

If the explosion of the bill of material tells MRP how much of each part is needed,how does MRP learn when each of these parts is needed?

Accepted Answer

The answer of If the explosion of the bill of...

Question 20

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) 50 
B) 100 
C) 150 
D) 200 
E) 300

Exam 14: Material Requirements Planning Mrpand ERP

Lead times,inventory availability,and purchase orders outstanding are among the five things operations managers must know for effective use of dependent inventory models.

By convention,what is the top level in a product structure?

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

Consider the bill of material for Product J and the data given in the following table.The gross requirements for J are 200 units in week 6 and 250 units in week 8.Develop the MRP tables for each item for an 8-week planning period.Use the lot-for-lot lot-sizing rule.

Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity.

DRP is a time-phased stock-replenishment plan for all levels of a distribution network.

Which of the following statements regarding MRP in services is TRUE?

A(n)________ system is packaged business software that automates and integrates the majority of business processes,shares common data and practices across the entire enterprise,and produces information in a real-time environment.

An order for 120 units of Product M has been made.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand. (a)Calculate the net requirements for M. (b)Calculate the gross requirements for N. (c)Calculate the net requirements for N.

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Bills of material organized by major subassemblies or by product options are called ________.

Which of the following lot-sizing techniques results in the lowest holding costs?

What is DRP?

A paint company mixes ten different base colors into 3,000 different color options.If production scheduling is organized around the ten different base colors ,then the bills of material are classified as which of the following?

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

Enterprise resource planning (ERP) :

If the explosion of the bill of material tells MRP how much of each part is needed,how does MRP learn when each of these parts is needed?

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