OPMA CHAPTER 9

From the highest level planning at the top to the lowest level planning on 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 process is called

A net change MPR system

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

Available to promise

Which of the following are sources of demand for products in a material requirements planning system?

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

The master production schedule typically deals with what type of items?

End items

an _____ _____ ______ system is a computer system that integrates application programs from the functional areas of a firm.

Enterprise resource planning

Finished goods purchased by individuals external to the organization are considered dependent demand items

False

Which of the following is NOT a lot sizing technique used in MRP systems?

Fixed time costs

Which of the following is/are a part of an MRP record

Gross requirements Planning order receipts Net requirements

A bill-of-materials that uses differences in alignment to indicate the order of assembly of components is using which type of structure?

Indented structure

An EOQ lot sizing technique will try to minimize the sum of which of the following costs given a fairly constant demand?

Inventory holding Setup

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

Lot-for-lot

In industry, materials requirements planning also goes by the acronym

MPR

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

Material requirements planning

Which of the following is/are issues a master scheduler must consider

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

The bill-of-material (BOM) file is also known as

Product structure file and product tree

The first step in MRP explosion process is?

Retrieve the gross requirements for end items from the MPS

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

Which of the following is NOT a part of the material requirements planning system

Supplier delivery schedule

The file containing the complete production description, parts listing, quantity needed and product build sequence is called

The bill-of-material

______ _______ are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.

Time fences

In which of the following product manufacturing scenarios, would MRP provide the highest benefit?

Trucks, appliances, and motors

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

Which of the following is NOT a type of time fence described in the text?

Variable

The master production schedule is used to plan

end items

A material requirements planning system interfaces with the master production schedule, bill-of-materials file and

inventory records file

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

inventory records file

At any point in time, an MRP system can reference the ____ _____ ____ for information concerning 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 transactions file

The inventory records file contains an ____ _____ data segment that contains a detailed description of the item, lead time, information, safety stock levels and other records

item master

The _____ _____ _____ lot sizing technique 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

least unit cost

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

An item that can be produced and stocked as a subassembly often uses a ______ bill-of-materials for planning

modular

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

net; gross

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

peg

The ultimate goal of any MRP lot sizing approach is to balance the ____ or _____ costs and the _____ costs associated with meeting the net requirements generated by the MRP planning process

setup, order, holding