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