MS350 Chapter 9

a, b

Which of the following would be located on the MPS plan? Multiple select question. a. pens ordered from an office supply company. b. a new vehicle purchased from an automotive dealer. c. vehicle engine purchased for a production line. d. pen caps ordered by a pen manufacturer from a supplier.

BOM

A bill-of-material also goes by the acronym __________

c. a more complete analysis

Least unit cost provides ______ as an advantage when taking variable ordering costs and setup costs into account. a. a simple return on investment b. a quick reference c. a more complete analysis d. a shorter computation

end

Level 0 items during the explosion process are typically referred to as ___________ items, or gross requirements.

master production schedule

medium level planning

a. time buckets.

At any point in time, an MRP system can access the status segment of the inventory record according to specific time periods commonly known as a. time buckets. b. bill-of-material. c. low-level coding system. d. product part matrix.

b. the lowest total cost method

If ordering costs and setup costs remain constant then ______ is the easiest method for lot sizing. a. any method b. the lowest total cost method c. the least unit cost method d. the lot-for-lot method

d. High setup costs

A major drawback with lot-for-lot sizing is? a. Low investment costs b. High capital investments c. Low setup costs d. High setup costs

b. inventory records file.

A material requirements planning system interfaces with the master production schedule, bill-of-materials file and ______. a. product demand. b. inventory records file. c. forecasted sales. d. customer purchase order.

b. EOQ= √(2DS/H)

Which is the correct equation used to calculate economic order quantity (EOQ)? a. EOQ= √(2HS/D) b. EOQ= √(2DS/H) c. EOQ= √(DS/H) d. EOQ= √(2DH/S)

a, c

Which of the following are sources of demand for products in a material requirements planning system? Multiple select question. a. Inter-department transactions. b. The master production schedule. c. Customer orders from sales personnel. d. Customer orders that have been canceled.

d. Supplier delivery schedule

Which of the following is NOT a part of the material requirements planning system? a. Master production schedule b. Bill-of-materials c. Inventory records d. Supplier delivery schedule

c. Fixed time costs

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

a, d

An EOQ lot sizing technique will try to balance the sum of which of the following costs given a fairly constant demand? Multiple select question. a. Holding costs b. Transportation c. Marketing d. Setup

b, c, d

In which of the following industry types would MRP provide high benefits? Multiple select question. a. Make-to-order b. Engineer-to-order c. Assemble-to-order d. Assemble-to-stock

batches

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

b. a schedule for when each of these should be produced or ordered.

Outside of determining parts, components, and materials, MRP provides a. a forecast for the next 6 months. b. a schedule for when each of these should be produced or ordered. c. independent demand for products being produced. d. the total plan for all capital investments needed.

d. time fences

Periods of time having some specified level of opportunity for the customer to make changes are called ______. a. time coordinates b. fence schedules c. quality fences d. time fences

aggregate

Product demand for end items comes primarily from two main sources: known customers who have placed specific orders and the ________________ production plan.

a. Projected available balance = sum of on-hand inventory - gross requirements + scheduled receipts + planned orders

Projected balance, the amount of inventory expected at the end of a period, is calculated using which equation? a. Projected available balance = sum of on-hand inventory - gross requirements + scheduled receipts + planned orders b. Projected available balance = sum of on-hand inventory + gross requirements - scheduled receipts + planned orders c. Projected available balance = sum of on-hand inventory + gross requirements - scheduled receipts - planned orders d. Projected available balance = sum of on-hand inventory + gross requirements + scheduled receipts - planned orders

a. Lot-for-lot

Setting planned orders to match the net requirements exactly is what type of lot sizing technique? a. Lot-for-lot b. EOQ c. Least total costs d. Least unit costs

b. The bill-of-material

The file containing the complete product description, parts listing, quantity needed and product build sequence is called? a. The peg record b. The bill-of-material c. The MPS d. The inventory log

a. Retrieve the gross requirements for end items from the master schedule.

The first step in the MRP explosion process is? a. Retrieve the gross requirements for end items from the master schedule. b. Place part orders for net requirements. c. Identify the inventory on hand for all parts. d. Calculate the lead times for all products that have been schedule on the master schedule.

b, c, d, e

The inventory records file contains information such as Multiple select question. a. list of authorized suppliers. b. safety stock. c. lead time. d. planned order releases. e. item description.

d. inventory

Using complex lot-sizing techniques, larger lot sizes can cause an increase in ______, complicating plant logistics. a. setup costs b. supplier costs c. demand d. inventory

a. On-hand balance

When safety stock is needed, what is reduced by the safety stock? a. On-hand balance b. Forecast for last period c. Demand from sales d. Projected available balance

a, c

Which of the following is true about MRP? Multiple select question. a. MRP is an acronym for Material Requirements Planning. b. MRP is the highest level of planning in most organizations. c. MRP is used to determine the number of parts, components, and other materials needed to produce a product. d. MRP is not used for dependent demand items.

time fences

___________ ____________ is/are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.

aggregate planning

highest level planning

materials requirements planning

lowest level planning