Question 1

Distortion in MRP systems can be minimized when safety stock is held at the:

Accepted Answer

A)  purchased component or raw material level.
B)  work-in-process level.
C)  finished goods level.
D)  A and B
E)  A and CF) None of the above
G) C) and D)

Question 2

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 balancingF) B) and D)
G) A) and B)

Question 3

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)  110F) A) and B)
G) A) and C)

Question 4

A(n)________ is a bill of material for components,usually subassemblies,that exist only temporarily;they are never inventoried.

Accepted Answer

Phantom bi...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 quantitiesF) A) and D)
G) B) and D)

Question 7

Operations splitting sends pieces to the next operation before the entire lot is completed on the previous operation.

Accepted Answer

A) True 
 B)False

Question 8

The time-phased product structure,unlike the bill of material,adds the concept of lead times.

Accepted Answer

A) True 
 B)False

Question 9

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.F) A) and D)
G) C) and E)

Question 10

________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Accepted Answer

The answer of ________ is a lot-sizing technique that generates...

Question 11

If 100 units of Q are needed and 10 are already in stock,then the gross requirement is 100 and the net requirement is 90.

Accepted Answer

A) True 
 B)False

Question 12

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%F) D) and E)
G) A) and E)

Question 13

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...

Question 14

Product A is made from 2 Bs and 1 C.Lead times for A,B,and C are 2,3,and 2 weeks respectively.Currently there are 2 Bs and a 5 Cs on hand,with 5 of each scheduled to arrive at the end of week 1.If 20 As are needed during week 4,can the order be completed (it is the start of week 0 currently)?

Accepted Answer

To produce 20 As requires 40 B...

Question 15

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.F) All of the above
G) None of the above

Question 16

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 17

Which of the following is TRUE regarding the POQ lot-sizing method?

Accepted Answer

A)  Each POQ interval is recalculated at the time of the order release.
B)  Each order quantity and POQ interval are recalculated at the time of the order release.
C)  The POQ interval and all order quantities remain fixed throughout the planning horizon.
D)  Each order quantity is recalculated at the time of the order release.
E)  POQ lot sizes are always at least as large as the EOQ lot sizes would be.F) None of the above
G) B) and C)

Question 18

Firms may discover that,rather than adapting ERP to the way they do business,they have to adapt the way they do business to accommodate the ERP software.

Accepted Answer

A) True 
 B)False

Question 19

The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.

Accepted Answer

A) True 
 B)False

Question 20

A(n)________ provides feedback to the capacity plan,master production schedule,and production plan so planning can be kept valid at all times.

Accepted Answer

closed-loo...

Exam 14: Material Requirements Planning Mrpand Erp

Product A is made from 2 Bs and 1 C.Lead times for A,B,and C are 2,3,and 2 weeks respectively.Currently there are 2 Bs and a 5 Cs on hand,with 5 of each scheduled to arrive at the end of week 1.If 20 As are needed during week 4,can the order be completed (it is the start of week 0 currently)?

Correct AnswerverifiedTo produce 20 As requires 40 B...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedLot sizing is important because,at the v...View AnswerShow Answer

Which of the following is TRUE regarding the POQ lot-sizing method?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedThe advantage is that it allows the firm...View AnswerShow Answer

________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Correct AnswerverifiedShow Answer

Firms may discover that,rather than adapting ERP to the way they do business,they have to adapt the way they do business to accommodate the ERP software.

Correct AnswerverifiedShow Answer

Operations splitting sends pieces to the next operation before the entire lot is completed on the previous operation.

Correct AnswerverifiedShow Answer

A(n)________ is a bill of material for components,usually subassemblies,that exist only temporarily;they are never inventoried.

Correct AnswerverifiedPhantom bi...View AnswerShow Answer

Distortion in MRP systems can be minimized when safety stock is held at the:

Correct AnswerverifiedShow Answer

The time-phased product structure,unlike the bill of material,adds the concept of lead times.

Correct AnswerverifiedShow Answer

If 100 units of Q are needed and 10 are already in stock,then the gross requirement is 100 and the net requirement is 90.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A(n)________ provides feedback to the capacity plan,master production schedule,and production plan so planning can be kept valid at all times.

Correct Answerverifiedclosed-loo...View AnswerShow Answer

Correct Answer
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To produce 20 As requires 40 B...
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Lot sizing is important because,at the v...
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The advantage is that it allows the firm...
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Phantom bi...
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closed-loo...
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