LCM - CH. 9
______ change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item.
Net
Which type of time fence allows for changes to a specific product so long as parts are available?
Slushy
Which of the following is NOT a part of the material requirements planning system?
Supplier delivery schedule (Reason: The main components of the MRP system are the bills-of-materials, the inventory records, and the master production schedule.)
Management defines ______ ______ as periods of time having some specified level of opportunity for the customer to make changes.
Time fences
Least unit cost provides ______ as an advantage when taking variable ordering costs and setup costs into account.
a more complete analysis
Outside of determining parts, components, and materials, MRP provides
a schedule for when each of these should be produced or ordered
The master production schedule is used to plan
end items.
Using complex lot-sizing techniques, larger lot sizes can cause an increase in ______, complicating plant logistics.
inventory
A process that places all identical parts at the same level in the bills-of-materials simplifies computations is known as ______ level coding.
low
After finding gross requirements, the next step in the MRP explosion process references inventory on hand and scheduled orders to calculate ______ requirements.
net
The file created by retracing a material requirement upward in the product structure to identify each parent item that created the demand is called a ______ record.
peg
Which of the following would be located on the MPS plan?
pens ordered from an office supply company. a new vehicle purchased from an automotive dealer. (Reason: MPS is used to plan end items, those goods sold to customers.)
The bill-of-material (BOM) file is also known as a
product tree. product structure file.
Some benefits of an ERP system are
sales can track all the details of an order. quality management can develop inspection points for products during manufacturing. manufacturing knows about orders as soon as they are entered.
A ______ bill-of-materials includes items with fractional options.
super
If ordering costs and setup costs remain constant then ______ is the easiest method for lot sizing.
the lowest total cost method
Which of the following is/are a part of an MRP record?
-Gross requirements -Planned order receipts -Net requirements (Reason: MRP records contain gross requirements, scheduled receipts, projected available balance, net requirements, planned-order receipts, and planned order releases data.)
From the highest level planning at the top to the lowest level planning at the bottom, rank the following.
1. Aggregate planning 2. Master production schedule 3. Material requirements planning
If a company has an MRP program that can reflect the exact status of each item in real time, this program is called?
A net change MRP system
Which of the following are sources of demand for products in a material requirements planning system?
Customer orders from sales personnel. Inter-department transactions.
A modular bill-of-materials is a standard item with many options within the module.
False
______ are the part quantities issued in the planned order receipt and planned order release sections of an MRP schedule.
Lot sizes
Setting planned orders to match the net requirements exactly is what type of lot sizing technique?
Lot-for-lot
Which of the following is/are issues a master scheduler must consider?
Trade-off manufacturing, engineering and marketing conflicts. Never lose sight of the aggregate plan. Be involved with customer order promising.
Which of the following is not a type of time fence described in the text?
Variable Reason: Time fences are typically described as frozen, slushy, or liquid.
The ______ unit cost method is a dynamic lot-sizing technique that adds the ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.
least
Periods of time having some specified level of opportunity for the customer to make changes are called ______.
time fences
Which of the following statements best characterizes an MRP system?
A system-driven logic that allows a company to tie the production functions together from a material planning and control view.
If a company has more units in the master production schedule than firm customer orders, the residual is called?
Available to promise (Reason: Available units scheduled for production that are not committed to customer orders are called available to promise.)
Which is the correct equation used to calculate economic order quantity (EOQ)?
EOQ= √(2DS/H)
Which of the following is true about MRP?
MRP is an acronym for Material Requirements Planning. MRP is used to determine the number of parts, components, and other materials needed to produce a product.
The first step in the MRP explosion process is?
Retrieve the gross requirements for end items from the master schedule.
A company producing widgets only needs Part A for 40% of the widgets built. This company is likely using what type of bill-of-material?
Super bill-of-material
The file containing the complete product description, parts listing, quantity needed and product build sequence is called?
The bill-of-material (Reason: The bill-of-material contains the complete product description, parts listing, quantity needed and product build sequence.)
The next level in the planning process down from an aggregate plan is called?
The master production schedule
The master scheduler typically focuses on end items rather than raw materials.
True
True or false: A least total cost lot sizing technique is a dynamic approach that continually looks for an optimal lot size where carrying costs and ordering costs are close to equal.
True
Product demand for end items comes primarily from two main sources: known customers who have placed specific orders and the ______ production plan.
aggregate
MRP systems tend to work best in companies where products are made in ______ using the same productive equipment.
batches
A material requirements planning system interfaces with the master production schedule, bill-of-materials file and ______.
inventory records file. Reason: The MPS, bill-of-materials, and inventory records file are the three sources for the MRP.
When changes occur because of stock receipts and disbursements, scrap losses, wrong parts and canceled orders, the real-time file capturing these changes is called the
inventory transactions file.
The ______ ______ ______ method is a dynamic approach that adds ordering and inventory carrying costs for each trial lot size, divides the costs by the number of units, and chooses the lot size with the lowest unit cost. (Enter only one word per blank.)
least unit cost
One of the limitations with least total cost (LTC) is the influence by the
length of the planning horizon.
An item that can be produced and stocked as a subassembly often uses a ______ bill-of-materials for planning.
modular
The ultimate goal of any MRP lot sizing approach is to balance the ______ setup or ______ costs and the costs associated with meeting the net requirements generated by the MRP planning process. (Enter only one word per blank.)
-order -holding
The inventory records file contains information such as
-planned order releases. -safety stock. -item description. -lead time. (Reason: The inventory records file can be extensive and contains a detailed description of the item, lead time, safety stock and other needed information.)
A bill-of-material also goes by the acronym ______.
BOM
A(n) ______ ______ ______ system is a computer system that integrates application programs from the functional areas of a firm.
Enterprise resource planning (ERP)
A major drawback with lot-for-lot sizing is?
High setup costs
In which of the following industry types would MRP provide high benefits?
Assemble-to-stock Engineer-to-order Assemble-to-order
This feature identifies the difference between the number of units currently included in the master schedule and firm customer orders.
Available to promise
Which of the following is not a lot sizing technique used in MRP systems?
Fixed time costs
An EOQ lot sizing technique will try to balance the sum of which of the following costs given a fairly constant demand?
Holding costs Setup (Reason: The EOQ process balances the sum of inventory holding and setup costs.)
When safety stock is needed, what is reduced by the safety stock?
On-hand balance
A process that places all identical parts at the same level in the bills-of-materials simplifies computations. This process is known as low level coding.
True
The inventory transactions file tracks inventory changes:
as they occur.
Lumpiness, or the tendency for uneven production, further down the creation sequence is
caused by items being withdrawn from inventory in lots.
The BOM file is often called the product structure file or product ______.
tree
