APICS CPIM BSCM Session 4 Master Planning

a. X X is the independent demand item from the master production schedule that becomes a gross requirement for material requirements planning. Answers b, c, and d are incorrect. They are components of X and are dependent demand items.

Refer to the diagram on page 4-67 of your participant guide. Which is the independent demand item? a. X b. 1 c. 2 d. 3

a. Item A is the parent of item B Item A is the end item and parent of both assembly A and part B. Answer b, part C, is a component and not a parent of item A. Answer c, item A also, is a parent to items B and C, not of D. Answer d, items D and E, are components of B.

Refer to the diagram on page 4-69 of your participant guide. Which of the following statements is more accurate? a<bc b<de a. Item A is the parent of item B b. Item C is the parent of item A c. Item A is a parent of item D d. Item D and E are components of A

c. 3 Week 3. Parent item A must be available at the beginning of week 5. Since the combined lead time for parent A and its component B is two weeks, the planned order release date for component B must be offset by two weeks, which brings it back to the beginning of week 3.

Refer to the diagram on page 4-71 of your participant guide. The lead time for each item is one week. If an order for 50 of A is to be delivered in week 5, in what week will there be a planned order release for item B? a<bc b<de a. 5 b. 4 c. 3 d. 2

material requirements planning (MRP)

A set of techniques that uses BOM data, inventory data, and the MPS to calculate requirements for materials

lead-time offset

A technique used in MRP where a planned order receipt in one time period will require the release of that order in an earlier time period based on the lead time for the item

planning bill of material (BOM)

An artificial grouping of items or events in BOM format used to facilitate master scheduling and material planning

pegging

In MRP and MPS, the capability to identify for a given item the sources of its gross requirements or allocations

net requirements

In MRP, _______ are derived as a result of applying gross requirements and allocations against inventory on hand, scheduled receipts, and safety stock. When lot-sized and offset for lead time, these become planned orders.

scheduled receipt

Open order that has an assigned due date

priority planning

The function of determining what material is needed and when, and maintaining proper due dates for required materials

parent item

The item produced from one or more components

planned order receipt

The quantity planned to be received at a future date as a result of a planned order release. These differ from scheduled receipts in that they have not been released

component

The raw material, part, or subassembly that goes into a higher level assembly, compound, or other item

gross requirement

The total of independent and dependent demand for a component before the netting of on‐hand inventory and scheduled receipts

exploding

Using the BOM (bill of material) to calculate component quantities

c. BOM (bill of material) Bill of material. Answer a contains information on the method of manufacture, including operations, sequence, and work centers. Answer b uses the bill of material to explode requirements for the priority plan. Answer d is usually the result of an order released by the MRP process to acquire raw materials and components.

What is the name of the document that shows the component parts and the number of parts needed to make one of an assembly or subassembly? a. route sheet b. material requirements plan c. BOM (bill of material) d. material requisitionc.

b. MRP (Material requirements planning) Answer a is a set of priority planning techniques used at the end item planning level whereas answer b plans at the component level as well. Answer c addresses the availability of resources to meet priority requirements. Answer d consists of techniques used to implement the priority plan established by the MRP process.

What is the name of the set of priority planning techniques for planning component items below the end-item level? a. master scheduling b. MRP c. capacity planning d. production control

c. Pegging Pegging in MRP and MPS relates (traces) a component to its current sources of demand (i.e., to all of its parents for which there is a current demand). Answer a (where-used) is similar but not the same as pegging because it relates components to their parents regardless of current demand. Answer b (relating) is not a term in the APICS Dictionary. Answer d (item planning) could be a term associated with item inventory management in general, but in any event is not as practical as answer c.

What is the term for the ability to relate the demand for an item shown on an MRP record back to the parent causing the demand? a. where-used b. relating c. pegging d. item planning

d. The MPS (master production schedule) The master production schedule. Although answer a is an input the master production schedule and therefore indirectly to MRP, it is not as good an answer as d. Answers b and c respectively validate and implement the priority plan produced by the MRP system.

Which of the following is a major input to an MRP system? a. The production plan b. The capacity plan c. Shop floor activity planning and control d. The MPS (master production schedule)

b. Keep priorities current The objective of MRP is to keep priorities (due dates for end items and components) current. Answer a is an objective of capacity planning, answer c is an input to the master production schedule, and answer d is an overall objective of aggregate inventory management.

Which of the following is an objective of material requirements planning? a. Keep the factory busy b. Keep priorities current c. Determine the forecast d. Minimize inventory investment

b. A part has one, and only one part number Part numbers must be unique for control purposes. Answers a and c are not true as they are contrary to answer b. Answer d is not true because an assembly can be a component (subassembly) of another assembly or a parent of subassemblies and parts.

Which of the following statements is true? a. the same part number can be used to identify similar products b. a part has one and only one part number c. the same part on different BOMs will have a different number d. an item can be either a parent or a component, but not both

a. Planned order receipts show when the order is needed Answer b is incorrect because an order that has been released is an open order. Answer c is also incorrect because a scheduled receipt shows when an item is due into inventory. Answer d is incorrect because gross requirements come from the planned order release of the parent.

Which statement is correct? a. Planned order receipts show when the order is needed b. When an order is released, it becomes a planned order. c. Scheduled receipts show when goods were put into inventory d. Gross requirements come from the planned order receipt of the parent