Chapter 14

A master production schedule shows the beginning inventory is 50 units, the forecast is 200 units, and actual customer orders are 220 units. What is the quantity that is available to promise in period 1? 170 150 0 50

0 The largest of the forecast or customer orders is evaluated. Since the customer orders are greater than the forecast, 220 − 50 = 170 is the number of units that is in the MPS. Since the MPS plus the on-hand inventory equal the actual customer orders the available to promise is zero.

Jones Company uses widgets as component parts. In a particular week, it has gross requirements for 250 units of widgets, beginning inventory of 50 widgets and it scheduled receipts of 350 widgets. Available inventory for the next period is: 50 650 250 150

150

Jones Company uses widgets as component parts. In a particular week it has gross requirements for 250 units of widgets, beginning inventory of 50 widgets, and scheduled receipts of 350 widgets. Available inventory for the next period is: A. 650. B. 50. C. 250. D. 150.

150. Beginning inventory (50) + scheduled receipts (350) − gross requirements (250) = 150.

A master production schedule shows the beginning inventory is 50 units, the forecast is 80 units, and actual customer orders are 70 units. Using a lot-for-lot rule, what is the MPS quantity for period 1? 70 20 30 80

30 The largest of the forecast or customer orders is evaluated. Since the forecast is greater than the customer orders, 80 − 50 = 30 is the number of units that is in the MPS.

A master production schedule shows the beginning inventory is 100 units, the forecast is 250 units, and actual customer orders are 400 units. Using a lot-for-lot rule, what is the MPS quantity for period 1? A. 150 B. 250 C. 300 D. 400

300 The largest of the forecast or customer orders is evaluated. Since the customer orders are greater than the forecast, 400 − 100 = 300 is the number of units that is in the MPS.

A master production schedule shows the beginning inventory is 200 units, the forecast is 600 units, and the actual customer orders is 500 units. Using a lot-for-lot rule, what is the MPS quantity for period 1? A. 400 B. 300 C. 600 D. 500

400 The largest of the forecast or customer orders is evaluated. Since the forecast is greater than the customer orders, 600 − 200 = 400 is the number of units that is in the MPS.

A master production schedule shows the beginning inventory is 40 units, the forecast is 100 units, and actual customer orders are 80 units. What is the quantity that is available to promise in period 1? 60 80 40 100

60

500 The number of items available to promise in week 4 is the forecast minus the actual customer orders, which is 1,200 − 700 = 500.

A master production schedule shows the following information: Based on the information in the MPS, what is the number of items that is available to promise in week 4? 1,500 700 1,200 500

80

A master production schedule shows the following information: Using a lot-for-lot rule, what is the MPS quantity for period 1? 90 100 80 40

500

A master production schedule shows the following information: Using a lot-for-lot rule, what is the MPS quantity for week 4? 450 500 50 400

20. The number of items available to promise in period 2 is the forecast minus the actual customer orders, which is 200 − 180 = 20.

A master production schedule shows the following information: What is the number of items available to promise for period 2? None of these. 0. 20. −20.

8,000 The net requirement in week 6 is 8,000 units. Working backward by the two-week lead time, an order must be released for 8,000 units in week 4.

An MRP record for a motor is shown in the following table. What is the planned order release for week 4? A. 0 B. 10,000 C. 8,000 D. 6,000

20 units. At the end of week 1, the available inventory is 50 units − 20 units = 30 units. The gross requirements in week 2 are 30, so the on-hand inventory − 30 = 0. However, 20 units of safety stock are required so the net requirements are 20 units.

An MRP schedule is as follows. What are the net requirements in week 2? 20 units. 0 units. 50 units. 30 units.

If the cumulative lead time is eight weeks, for a project to be feasible the MPS planning horizon must be: A. Exactly eight weeks. B. At least eight weeks. C. Less than eight weeks. D. At least 16 weeks.

At least eight weeks.

A detailed description of an "end item" along with a list of all of its raw materials, parts, and subassemblies is shown in a: DRP. MPS. Planning horizon. BOM.

BOM.

Significant changes in an MPS quantity several weeks into the planning horizon can: Make the MRP more accurate. Increase safety stock. Cause inconsistencies in the MRP. Reduce stockouts.

Cause inconsistencies in the MRP.

The longest lead-time path in the BOM is the: A. Time bucket. B. Planning horizon. C. Time window. D. Cumulative lead time.

Cumulative lead time.

The positioning and replenishment of finished goods inventories at the retail level can be determined using: A. MRP. B. CRP. C. DRP. D. RFID.

DRP

Zanda Company is looking for a requirements planning system to help plan replenishment of its finished goods throughout its network of distribution centers. The type of system Zanda should consider is known as: A. CRP. B. DRP. C. MRP. D. ERP.

DRP.

Software that consolidates all of the business planning systems and data throughout an organization is: MPS DRP MRP ERP

ERP

Benefits of ERP systems include all of the following EXCEPT: A. Easy implementation. B. Fewer data entry errors. C. More informed business decisions. D. Improved customer service.

Easy implementation.

125 units The gross requirements for A is 100, but there are 50 units of A in inventory, so only 50 units of A need to be produced. There are four Cs for each A, so the gross requirement for C is 4 × 50 = 200, but there are 75 units of C in inventory, so only 125 Cs must be produced.

End item A is made by assembling two parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the net requirement for part C? 125 units 100 units 70 units 200 units

250

End item A is made by assembling two parts of B and four parts of C. Part C is made from three parts of D and two parts of E. Gross requirements for end item A are 100 units. What is the gross requirement for part E? 175 375 250 275

Demand-driven MRP: Extends planning across the supply chain. Is also called advanced planning and scheduling. Focuses on distribution planning. Compares materials and capacity requirements within a single firm.

Extends planning across the supply chain.

All of the following are outputs from an MRP system EXCEPT: Forecasts. Change orders. Order releases. Exception reports.

Forecasts.

If the planning horizon is 12 weeks, the cumulative lead time must be: A. Greater than 12 weeks. B. Exactly equal to 12 weeks. C. Greater than six weeks. D. Less than or equal to 12 weeks.

Less than or equal to 12 weeks.

An end item A is made by assembling four of component B and one of component C. Component B is made from two of part D and four of part E. Within the bill of materials, component B is considered to be: Level 3. Level 0. Level 2. Level 1.

Level 1.

End item A is made by assembling two of part B and three of part C. Part C is made from two component D and two of component E. Component D is considered to be a: Level 2 input. Level 1 input. Level 0 input. Level 3 input.

Level 2 input.

End item A is made by assembling two of part B and three of part C. Part C is made from two of component D and two of component E. Component D is considered to be a: A. Level 0 input. B. Level 1 input. C. Level 2 input. D. Level 3 input.

Level 2 input.

A bill of materials file contains: Lists of materials required to produce end item products. None of these. Invoices for materials that must be paid in this period. Accounts payable for materials.

Lists of materials required to produce end item products.

The available capacity of a worker, machine, work center, or facility during a specific period of time is compared against the capacity needed for a specific work schedule in a: A. Load profile. B. Capacity profile. C. Infinite load. D. DRP.

Load profile.

The quantities of end items to be completed in each time period into the future is shown in a(n): BOM ERP MPS MPR

MPS

The primary purpose of an MRP system is to: A. Develop forecasts. B. Plan transportation and deliveries. C. Schedule personnel. D. Match supply and demand.

Match supply and demand.

Which of the following is NOT included in the information about the inventory records file for an item? A. Safety stock B. Preferred order quantity C. Net requirements D. Lead time

Net requirements

Which of the following is NOT an input to an MRP system? Inventory receipts. Actual orders. Order releases. Bill of materials.

Order releases.

Materials requirements planning (MRP) systems are used primarily to: Plan amounts of end items to produce. Plan orders. Plan distribution. Plan lead time.

Plan orders.

Which of the following pieces of information is NOT contained in an MPR secondary report? Planed order releases. Inventory levels. Schedule attachment. Cost.

Planed order releases.

Which of the following is NOT an input into the MRP? Bill of materials Inventory records file Master production schedule Planned order release

Planned order release

Which of the following pieces of information is NOT contained in an MRP secondary report? Planned order releases. Cost. Schedule attainment. Inventory levels.

Planned order releases. Planned order releases are contained in primary reports, not secondary reports.

The entire time period covered by the MPS is the: A. Time bucket. B. Cumulative lead time. C. Planning horizon. D. Production schedule.

Planning horizon.

The entire time period covered by the MPS is the: Planning horizon. Cumulative lead time. Time bucket. Production schedule.

Planning horizon.

MRP is a process that would be most applicable in which situation? A. Planning requirements for repair parts for production equipment in a manufacturing plant. B. Planning requirements for safety stocks of finished goods in a distribution center. C. Planning requirements for bicycle seats in a bicycle production plant. D. None of these.

Planning requirements for bicycle seats in a bicycle production plant. MRP is used for dependent demand items. Only planning requirements for bicycle seats in a bicycle production plant is a dependent demand item.

MPR is a process that would be most applicable in which situation? Planning requirements for safety stocks of finished goods in a distribution center. Planning requirements of bicycle seats in a bicycle production plant. Planning requirements for repair parts for production equipment in a manufacturing plant. None of these.

Planning requirements of bicycle seats in a bicycle production plant.

Which of the following would benefit the most from MRP? Building of a new bridge. Production of aluminum soft drink cans. Gasoline production. Production of vacuum cleaners.

Production of vacuum cleaners. Vacuum cleaners are moderately complex, discrete products that are produced in batches, good candidates for the use of MRP for planning.

Capacity requirements planning does all of the following EXCEPT: A. Determine if a work center has the capacity to implement the MRP plan. B. Use planned order releases and scheduled receipts to estimate work center loads. C. Develop a load profile. D. Recalculate the MRP plan.

Recalculate the MRP plan.

Planning for which of the following products would see the LEAST benefit from the use of an MRP system? A. Microwave ovens B. Mobile phones C. Shampoo D. Power lawn mowers

Shampoo

Constant changing of the master schedule and the resulting changes in the requirements for components is referred to as: A. Master schedule dynamics. B. System nervousness. C. Bad planning. D. MRP failure.

System nervousness.

A company has decided to outsource the production of key components for its main product to suppliers. What effect will this have on the product's bill of materials? A. None. B. The bill of materials will be wider. C. The bill of materials will be deeper. D. The bill of materials will be flatter.

The bill of materials will be flatter.

Load below capacity in periods 1 and 3. To equal capacity, planned releases would have to be 350 in a period to result in 700 hours of processing load.

The following table shows capacity requirements data for making Blodgetts. A load profile would show: A. Load above capacity in periods 3 and 5. B. Load below capacity in periods 1 and 3. C. Load is exactly equal to capacity in period 5. D. None of these.

All of the excess demand in days 4 and 5 can be shifted to day 3. With the current capacity, exactly 48 units can be made each day. The excess of order releases (demand) over capacity in day 4 is six and in day 5 is two. These units can be shifted to day 3, and capacity would exactly meet demand in days 3 through 5.

The following table shows capacity requirements data for making tabletops. Which of the following is TRUE? All of the excess demand in days 4 and 5 can be shifted to day 3. New machines are needed. Overtime is needed in day 1. Capacity exactly meets demand in day 5.

An MPS shows: The number of each type of part that is needed to make the final product. The scheduled releases for all parts and components. The change orders that are required. The quantities of end items to be completed in each time period.

The quantities of end items to be completed in each time period.

The planned order releases in week 5 are 10 units. Each unit must be processed for five minutes at the workstation. If the available capacity at the workstation is one hour: A. Overtime will be needed. B. Delivery lead times should be increased. C. The workstation is underloaded. D. An order backlog will be created.

The workstation is underloaded.

Advanced planning and scheduling systems: All of these. Use a similar logic to the logic used in MRP. Consolidate all business planning systems and data throughout an organization. Integrate materials and capacity planning into one system.

Use a similar logic to the logic used in MRP. APS does not consolidate all planning (ERP does that). APS does use logic similar to MRP and integrates materials and capacity planning.

Distribution requirements planning: A. Uses logic that starts at the manufacturing plant and works forward toward the customer. B. Includes only firm orders in its calculations. C. Uses logic similar to MRP, beginning at the point closest to the customer. D. Is normally not included as a module in ERP software.

Uses logic similar to MRP, beginning at the point closest to the customer.

104

Using the BOM, if two units of A are needed, how many of K will be required? Assume that there is no on-hand inventory of any items. A. 16 B. 34 C. 52 D. 104