OPM 311 CH 9 HW

Which of the following is an input to the master production schedule? Bill of materials (BOM) file Inventory records file Exception reports Planned-order schedules None of the above

Bill of materials (BOM) file Inventory records file Exception reports Planned-order schedules correct None of the above

Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50? 1,200 1,300 1,150 2,450 None of the above

1,250 - 50 = 1,200. Net requirements are the amounts that are 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.

In a typical inventory status record which of the following would you not expect to see? Scrap allowance Order quantity Gross requirements Planned-order releases Lost items

Scrap allowance Order quantity Gross requirements Planned-order releases correct Lost items The inventory status file is kept up to date by posting inventory transactions as they occur. These changes occur because of stock receipts and disbursements, scrap losses, wrong parts, canceled orders, and so forth.

Low level coding in MRP indicates the exact status of each item managed by the system in "real time."

correct False Low-level coding (is where) each item is placed at the lowest level at which it appears in the structure hierarchy.

In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

correct False Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item. Net change enables the system to reflect in "real time" the exact status of each item managed by the system.

The three main inputs to an MRP system are the bill of materials, the master schedule and the inventory records file.

correct True This BOM file is one of the three main inputs to the MRP program. (The other two are the master schedule and the inventory records file.)

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

True

An input to the material requirements planning (MRP) system is an exception report.

correct False This BOM file is one of the three main inputs to the MRP program. (The other two are the master schedule and the inventory records file.)

A product tree can do which of the following? Help to compute component usage Reduce product scrap Reduce labor overtime Reduce regular time labor Locate raw material supplies

correct Help to compute component usage Reduce product scrap Reduce labor overtime Reduce regular time labor Locate raw material supplies The BOM file is often called the product structure file or product tree because it shows how a product is put together. It contains the information to identify each item and the quantity used per unit of the item of which it is a part.

MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

correct True MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

correct True MRP provides the schedule specifying when each of these items should be ordered or produced.

Net change MRP systems are "activity" driven.

correct True Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item. Net change enables the system to reflect in "real time" the exact status of each item managed by the system.

The master production schedule states the number of items to be produced during specific time periods.

correct True The master production schedule states the number of items to be produced during specific time periods.

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become more "lumpy."

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

MRP systems seek to achieve which of the following? Minimize lot sizes Determine the number of dependent demand items needed Relieve capacity bottlenecks Provide a yardstick for future improvements Improve on JIT methods

Minimize lot sizes correct Determine the number of dependent demand items needed Relieve capacity bottlenecks Provide a yardstick for future improvements Improve on JIT methods MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item. MRP also provides the schedule specifying when each of these items should be ordered or produced. MRP is based on dependent demand. Dependent demand is caused by the demand for a higher-level item.

Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand? Planning bill of materials file Modular bill of materials file Super bill of materials file Exception report file Peg record file

Planning bill of materials file Modular bill of materials file Super bill of materials file Exception report file correct Peg record file The MRP program allows the creation of a peg record file either separately or as part of the inventory record file. Pegging requirements allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand.

Which of the following is an input file necessary to run an MRP system? Bill of materials (BOM) file Quality management report Exception reports Planned-order schedules Purchasing contracts

correct Bill of materials (BOM) file Quality management report Exception reports Planned-order schedules Purchasing contracts

The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

correct False EOQ assumes that parts are used continuously during the period. The lot sizes generated by EOQ do not always cover the entire number of periods. For example, the EOQ might provide the requirements for 4.6 periods (when another EOQ would be needed).

"Projected available balance" is a term referring to unsold finished goods inventory.

correct False Projected available balance is the amount of inventory (not just unsold finished goods) that is expected as of the end of a period.

A BOM file is also called which of the following?

correct Product tree Stocking plan Inventory usage record Production parts plan Time bucket schedule The BOM file is often called the product structure file or product tree because it shows how a product is put together.

A master production schedule is an input to a material requirements planning (MRP) system.

correct True Generally, the master schedule deals with end items and is a major input to the MRP process.

A lot-for-lot (L4L) lot sizing technique does not take into account setup costs or capacity limitations.

correct True Lot-for-lot (L4L) is the most common technique. It: • Sets planned orders to exactly match the net requirements. • Produces exactly what is needed each week with none carried over into future periods. • Minimizes carrying cost. • Does not take into account setup costs or capacity limitations.

MRP is based on dependent demand

correct True MRP is based on dependent demand. Dependent demand is caused by the demand for a higher-level item. Tires, wheels, and engines are dependent demand items based on the demand for automobiles, for example.

Time fences are periods of time having some specified level of opportunity for the customer to make changes.

correct True Management defines time fences as periods of time having some specified level of opportunity for the customer to make changes.

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

correct True To compute the amount of each item needed at the lower levels, each item would need to be expanded ("exploded") and summed. A more efficient procedure is to store parts data in simple single-level lists. That is, each item and component is listed showing only its parent and the number of units needed per unit of its parent.

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600? 670 600 530 70 None of the above

670 600 530 correct 70 None of the above Using net requirements, the program calculates when orders should be received to meet these requirements. This can be a simple process of just scheduling orders to arrive according to the exact net requirements or a more complicated process where requirements are combined for multiple periods. This schedule of when orders should arrive is referred to as "planned-order receipts." Since there is typically a lead time associated with each order, the next step is to find a schedule for when orders are actually released. Offsetting the "planned-order receipts" by the required lead time does this. This schedule is referred to as the "planned-order release." 670 - 600 = 70.

One of the main purposes of a MRP system is which of the following? Track inventory levels Create productive capacity Decrease layers of management Develop schedules specifying when each component should be ordered or produced. Upgrade manufacturing's professionalism

Develop schedules specifying when each component should be ordered or produced. MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item. MRP also provides the schedule specifying when each of these items should be ordered or produced.

MRP stands for Manufacturing Requirements Planning.

False Material Requirements Planning (MRP)

The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.

False The MRP program performs its analysis from the top of the product structure downward, calculating requirements level by level.