ISDS 14
The MPS calls for 50 units of Product A and 60 of B. There are currently 25 of Product B on hand. Each A requires 2 of Part C; each B requires 5 of C. There are 160 units of C available. The net requirements for C are
115
Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is _____ days.
13
The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 4 of Part B. There are 20 units of B available. The net requirements for B are
180
An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is
200
Given the following bill of material: If the demand for product A is 50 units, what will be the gross requirement for component E?
300
The MPS calls for 110 units of Product M. There are currently 30 of Product M on hand. Each M requires 4 of Component N. There are 20 units of N on hand. The net requirements for N are
300
Given the following bill of material: If the demand for product A is 50 units, what will be the gross requirement for component E?
50
Given the following bill of material: If the demand for product A is 30 units, and there are 10 units of B on hand and none of C, how many units of part D will be needed?
70
Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is _____ weeks.
8
Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is ______ weeks.
9
The minimum record accuracy required for successful MRP is approximately
99%
Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?
FCS recognizes the finite nature of capacity while MRP does not.
Which of the following is false concerning enterprise resource planning (ERP)?
It is inexpensive to implement.
MRP II is accurately described as
MRP augmented by other resource variables
Which of the following statements best compares modular bills and phantom bills?
Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried.
When safety stock is deemed absolutely necessary, the usual policy is to build it into which category of the MRP logic?
Projected On Hand
Which of the following statements regarding MRP in services is true?
Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.
Which of the following statements is true about the MRP plan when using lot-for-lot ordering?
The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.
Which of the following statements regarding lot-sizing is true?
Too much concern with lot-sizing results in false accuracy.
Which of the following statements regarding Wheeled Coach is false?
Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to rise.
Low level coding means that
a component item is coded at the lowest level at which it appears in the BOM structure
Which of the following best describes a gross material requirements plan?
a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started
Distribution resource planning (DRP) is
a time-phased stock replenishment plan for all levels of a distribution network
Which of the following regarding enterprise resource planning (ERP) is true?
a. It involves an ongoing process for implementation. b. It can incorporate improved, reengineered "best processes." c. It has a software database that is off-the-shelf coding. d. ERP systems usually include MRP, financial and human resource information. e. All of the above are true.
Which of the following statements regarding the gross material requirements plan is true?
a. It shows total demand for an item. b. It shows when an item must be ordered from a supplier or when production must be started. c. It combines a master production schedule with the time-phased schedule. d. It requires several inputs, including an accurate bill of material. e. All of the above are true.
The aggregate plan gets input or feedback from which of the following areas?
a. engineering b. finance, marketing, and human resources c. the master production schedule d. procurement, production, and general management e. all of the above
Dependent demand and independent demand items differ in that
a. for any product, all components are dependent-demand items b. the need for independent-demand items is forecast c. the need for dependent-demand items is calculated d. All of the above are true.
Enterprise resource planning (ERP)
a. has been made possible because of advances in hardware and software b. uses client/server networks c. creates commonality of databases d. uses business application-programming interfaces (BAPI) to access their database e. All of the above are true of ERP.
Distortion in MRP systems can be minimized when safety stock is held at the
a. purchased component or raw material level c. finished goods level e. a and c
Capacity planning in closed-loop MRP
a. utilizes feedback about workload from each work center b. may make use of resource requirements profiles (load reports) c. may smooth work center loads with such tactics as overlapping and lot splitting d. does not add capacity, but rather seeks effective use of existing capacity e. All of the above are true.
Enterprise resource planning (ERP)
automates and integrates the majority of business processes
The ______ is the input to material requirements planning which lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product.
bill of material
A bill of material lists the
components, ingredients, and materials required to produce an item
The bill of material contains information necessary to
convert (explode) net requirements at one level into gross requirements at the next level
In job shop (make-to-order) operations, the master production schedule is usually expressed in
customer orders
The phrase "demand related to the demand for other products" describes
dependent demand
In continuous (make-to-stock) operations, the master production schedule is usually expressed in terms of
end items
A bill of material must be updated with the corrected dimensions of a part. The document that details this change is a(n)
engineering change notice
The extension of MRP which extends to resources such as labor hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is
enterprise resource planning
In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket
is impossible
By convention, the top level in a bill of material is
level 0
What lot-sizing technique is generally preferred when inventory holding costs are extremely high?
lot-for-lot
Which of the following lot-sizing techniques results in the lowest holding costs?
lot-for-lot
In MRP, system nervousness is caused by
management's attempt to continually respond to minor changes in production requirements
A document calls for the production of 50 small garden tractors in week 1; 50 small garden tractors and 100 riding mowers in week 2; 100 riding mowers and 200 garden utility carts in week 3; and 100 riding mowers in week 4. This document is most likely a(n)
master production schedule
The ______ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.
master production schedule
The following table is an example of a(n)
master production schedule
Firms making many different final products use __________ to facilitate production scheduling.
modular bills
Linking a part requirement with the parent component that caused the requirement is referred to as
pegging
A master production schedule contains information about
quantities and required delivery dates of final products
All of the following are advantages of enterprise resource planning (ERP) except it
requires major changes in the company and its processes to implement
For the lot-sizing technique known as lot-for-lot to be appropriate
setup cost should be relatively small
A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles. Some assemblies and parts are common to many end items. To relieve the MPS of performing order releases on these common parts, the firm might choose to use the __________ technique.
supermarket
The number of units projected to be available at the end of each time period refers to
the amount projected to be on hand
A material requirements plan contains information with regard to all of the following except
the capacity needed to provide the projected output rate
Material requirements plans specify
the quantity and timing of planned order releases
If a load report (resource requirements profile) shows a work center scheduled beyond capacity
the work center's load may be smoothed by such tactics as operations splitting or lot splitting
Demand for a given item is said to be dependent if
there is a clearly identifiable parent
One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)
time fences
A master production schedule specifies
what product is to be made, and when
