MQM 227 Ch.21

If a company has an MRP program that can reflect the exact status of each item in real time and make immediate schedule adjustments when in conflict, this program is called?

A net change MRP system

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.

MPS

A time-phased plan specifying how many of each end item the firm plans to build and when.

A final assembly is made from standard options that the customer chooses.

Assemble-to-order

Examples: trucks, generators, motors. What is the industry type?

Assemble-to-order

If a company has more units in the master production schedule than firm customer orders, the residual is called?

Available to promise

___ ___ are the amounts needed week by week in the future over and above what is currently on hand or committed to through an order already released and scheduled.

Blank 1: Net Blank 2: Requirements

Generally, the master production schedule deals with ___ ___.

Blank 1: end Blank 2: items

A ___ requirement is the amount needed when the projected available balance plus the scheduled receipts in a period are not sufficient to cover the ___ requirements.

Blank 1: net Blank 2: gross

A ___ ___ is a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.

Blank 1: time Blank 2: fence

The purpose of ___ ___ is to maintain a reasonably controlled flow through the production system.

Blank 1: time Blank 2: fences

The least total cost method (LTC) is a dynamic lot-sizing technique that calculates the order quantity by comparing two costs for various lot sizes and then selects the lot in which these are most nearly equal. What are those two costs? Check both. Fixed costs Carrying cost Setup cost Variable costs

Carrying cost Setup cost

For Ford Motor Company, which of the following items would appear on its master production schedule? Check all that apply. Hoses Engines Cars Fan belts Trucks Vans Transmissions

Cars Trucks Vans

Inventory Records

Contains data such as the number of units on hand and on order.

Available to promise is a powerful tool for what?

Coordinating sales and production activities

Select all that apply Which of the following are sources of demand for products in a material requirements planning system? Customer orders from sales personnel Customer back orders from the previous period Inter-department transactions Orders for specific components needed in repair

Customer orders from sales personnel Inter-department transactions Orders for specific components needed in repair

Over time, the amount of capacity that is devoted to firm customer orders does what?

Declines rapidly

Which of the following is an input to the aggregate production plan? Firm orders Aggregate production plan Inventory records file Demand forecast Inventory transactions Bill-of--materials file Engineering design changers

Demand forecast

Least unit cost is what type of lot sizing technique?

Dynamic

Examples: turbine generators, heavy machine tools. What is the industry type?

Engineer-to-order

In which industry type does MRP provide the highest expected benefits? Check all that apply. Engineer-to-order Assemble-to-stock Process Make-to-stock Make-to-order Assemble-to-order

Engineer-to-order Assemble-to-stock Assemble-to-order

Which of the following are inputs to the master production schedule Firm orders Aggregate production plan Engineering design changers Inventory transactions Bill-of--materials file Inventory records file Demand forecast

Firm orders Aggregate production plan

Which of the following is not a lot sizing technique used in MRP systems? Lot-for-lot Least total costs Fixed time costs Economic order quantity

Fixed time costs

BoM

Identifies the specific materials used to make each item and the correct quantities of each.

Finished goods purchased by individuals external to the organization are considered what?

Independent demand items

Which of the following is an input to the inventory records file? Inventory transactions Aggregate production plan Inventory records file Firm orders Demand forecast Engineering design changers Bill-of--materials file

Inventory transactions

For MacDonald's, which of the following are dependent demand items? Check all that apply. Lettuce Frozen nuggets Buns Fish sandwiches Hamburger

Lettuce Frozen nuggets Buns

Setting planned orders to match the net requirements exactly is what type of lot sizing technique?

Lot-for-lot

The master production schedule is a major input to the ___ process.

MRP

The step in the planning process down from the master production schedule is called what?

MRP

n industry, materials requirements planning also goes by the acronym:

MRP

The ___ ___ is kept on each item managed by the MRP system, and includes gross requirements, scheduled receipts, available balances, net requirements, planned order receipts and order releases.

MRP Record

EOQ was not designed for a system like MRP. Why not?

MRP has discrete time periods

Items are manufactured by machine to customer order. These are generally industrial orders.

Make-to-order

Examples: piston rings, electrical switches. What is the industry type?

Make-to-stock

Why might the master scheduler modify the master production schedule? Check all that apply. Raw materials inventory is too high Vendors want the firm to make different products Master schedule requires excessive resources Work-in-process levels are too high One or more work centers lacks adequate capacity

Master schedule requires excessive resources One or more work centers lacks adequate capacity

Which of the following is not a characteristic of L4L lot sizing? Is the most common lot sizing technique. Produces exactly what is needed each week with no inventory carried over into future periods. Sets planned orders to exactly match the net requirements. Minimizes carrying cost. Minimizes ordering costs

Minimizes ordering costs

What is the term for a buildable item that can be produced and stocked as a subassembly.

Modular BOM

What does MRP calculate and schedule? Check all that apply. Parts Supplies Production of independent demand items Shipment to suppliers Raw materials

Parts Supplies Raw materials

This shows what subassemblies are generating the requirement for a part that we order from a supplier.

Peg report

Includes industries such as foundries, rubber and plastics, specialty paper, chemicals, paint, drug, food processors.

Process

___ ___ represent orders that have already been released and that are scheduled to arrive as of the beginning of the period.

Scheduled Receipts

Which of the following would generate an entry in the inventory transactions file? Check all that apply. Scrap loss Stock receipts A change in vendors Wrong parts Canceled orders Stock disbursements A revision to the forecast for that item.

Scrap loss Stock receipts Wrong parts Canceled orders Stock disbursements

An EOQ lot sizing technique will try to minimize which of the following costs given a fairly constant demand? Check all that apply. Setup Inventory holding Marketing Transportation

Setup Inventory holding

Which of the following would be part of the inventory status record for an item? Check all that apply. Setup Scrap allowance Description Forecast for the item Part number Last year's usage Cycle Number scrapped last year Lead time Order quantity Standard cost Safety stock

Setup Scrap allowance Description Part number Last year's usage Cycle Lead time Order quantity Standard cost Safety stock

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? Inventory records Supplier delivery schedule Master production schedule Bill-of-materials

Supplier delivery schedule

Which of the following is not a part of the material requirements planning system? Master production schedule Bill-of-materials Supplier delivery schedule Inventory records

Supplier delivery schedule

Product demand for end items comes primarily from two main sources. What are they? Check both. Back orders The aggregate production plan Firm customer orders Customer orders of specific parts and components either as spares or for service and repair

The aggregate production plan Firm customer orders

Net Requirement

The amount needed when the projected available balance plus the scheduled receipts in a period are not sufficient to cover the gross requirement

planned order receipts

The amount of an order that is required to meet a net requirement in the period

The next level in the planning process down from an aggregate plan is called?

The master production schedule

The question of flexibility within a master production schedule depends on several factors. Which of the following is not one of those factors?

The master production schedule

Which of the following is not an output report of the MRP computer program? Exceptions report Reports for performance control Palling reports Planned order releases Updated inventory balance

Updated inventory balance

When is a net change MRP system updated?

Whenever a transaction is processed that has an impact on the item

In which of the following product manufacturing scenarios, would MRP provide high benefit? Check all that apply. appliances motors trucks gears

appliances motors trucks

MRP systems tend to work best in companies where products are made in ___ using the same productive equipment.

batches

The requirements of dependent demand items tend to become more and more ___ as we go farther down into the product creation sequence.

bumpy

EOQ assumes that parts are used ___ during the period.

continuously

The least total cost method (LTC) is a ___ lot-sizing technique.

dynamic

Lot-for-lot causes ___ setup costs.

high

At any point in time, an MRP system can reference the ____ for instantaneous parts availability to help meet gross requirements.

inventory records file

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 transaction file

The _____ method is a dynamic lot-sizing technique that adds 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 unit cost

Lot sizing makes the ___ in the plant much more complicated.

logistics

An item that can be produced and stocked as a subassembly is often called a ___ bill-of-materials.

modular

Lot sizes are the part quantities issued in the planned order receipt and planned ___ ___ sections of an MRP schedule.

order release

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 file.

peg

planned order release

planned order receipt offset by lead time

Offsetting the planned-order receipts by the required lead time creates the planned-order ___.

release

In an attempt to save ___ costs, the inventory generated with the larger lot sizes needs to be stored.

setup

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 the firm's financing plans be involved with customer order promising adjust the raw material supply schedule as needed

trade-off manufacturing, engineering and marketing conflicts never lose sight of the aggregate plan be involved with customer order promising