MRP Questions

Service parts experience which of the following types of demand? A) Independent B) Dependent C) Independent and Dependent D) None of the above

C) Independent and Dependent *Example: a company makes wooden tables. The demand for the tables is independent & the demand for the ends, legs, and tops depends on the demand for the tables, and these are dependent demand items.

The document that shows the component parts and the number of parts needed to make one of an assembly or subassembly is called: A) a route sheet B) a material requirements plan C) a bill of material D) a material requisition E) none of the above

C) a bill of material *A listing of all the subassemblies, intermediates, parts, and raw materials that go into making the parent assembly showing the quantities of each required to make an assembly.

Which of the following is NOT true of an MRP record? A) the current time is the beginning of the first period B) the number of periods in the record is called the planning horizon C) an item is considered to be available at the end of the time bucket in which it is required D) the projected on-hand balance is for the end of the period E) the immediate or most current period is called the action bucket

C) an item is considered to be available at the end of the time bucket in which it is required *An item is considered to be available at the BEGINNING of the time bucket in which it is required.

Which of the following are controlled by the materials planner? A) exception messages B) released orders C) firm planned orders D) planned orders

C) firm planned orders

Which of the following represents a major difference between a scheduled receipt and a firm planned order? A) the computer can move the scheduled receipt, not the planned order B) only the scheduled receipt can occur within the planned horizon C) only the scheduled receipt represents a financial commitment D) the scheduled receipt is generated from the master schedule, the firm planned order generated from the MRP

C) only the scheduled receipt represents a financial commitment *Are orders placed on manufacturing or on a vendor and represent a commitment to make or buy.

The ability to relate the demand for an item shown on an MRP record back to the particular parent causing the demand is called: A) where-used B) relating C) pegging D) any one of the above E) none of the above

C) pegging *Pegging Report shows only those parents for which there is an existing requirement. *Shows the parents creating the demand for the components, the quantities needed, and when they are needed.

A bill of material whose purpose is to simplify forecasting, master production scheduling and material requirements planning is called: A) a summarized parts list B) where-used bill C) planning bill D) structured bill E) multi-purpose bill

C) planning bill **Are an artificial grouping of components for planning purposes. *They do not represent buildable products but an average product

________ is a set of priority planning techniques for planning component items below the _________:

MRP; end item level

A multi-level bill of material: I. Reflects the way the product will be manufactured. II. Is produced by the purchasing department. III. Is a parts list only and does not contain subassemblies. A) only I is true B) only II is true C) only III is true D) I and II are true E) I, II and III are true

A) only I is true *Are formed as logical groups of parts into subassemblies based on the way the product is assembled (frame, chassis, doors, windows & engine construct an automobile).

A bill of material for an item must change: A) when a component changes B) when there is a change in the use of an item C) when the item is used in another parent D) never E) if the item is fully interchangeable

A) when a component changes **A listing of all the subassemblies, intermediates, parts, & raw materials that go into making the parent assembly showing the quantities of each required to make an assembly. *A part is defined by its form, fit, or function. If any of these change, then it is not the same part, and must have a different part number.

Which of the following comes directly from external customers? A) Dependent demand B) Independent demand C) Bill of materials D) Order quantity

B) Independent demand *Wooden tables; demand for the tables is independent & created by customer demand. Legs, sides & top are dependent on the table demand.

Which of the following statements is best? A) A where-used report shows all the components that go into assembly B) Pegging reports show only the parents for which there are requirements C) A where-used report shows only those parents for which there is an existing requirement D) A where-used report is the same as a pegging report E) A pegging report shows all the parents for a component

B) Pegging reports show only the parents for which there are requirements *Where-used reports give the same information as a bill of material, but the where-used report gives the parents for a component whereas the bill gives the components for a parent. *Shows a listing of all the parents in which a component is used

The 3 inputs to the MRP process are: A) production activity control, purchasing, and the production plan B) inventory status, the master production schedule, and the product structure C) the master production schedule, inventory status, and the capacity requirements plan D) the product structure, production activity control, and inventory status E) the product structure, production activity control, and the master production schedule

B) inventory status (records), the master production schedule, and the product structure *MPS: drives the MRP system by providing the initial input for the items needed. *Inventory Records: status; the MRP system needs to know how much is available, how much is allocated, & how much is available for future demand.

Which of the following is elapsed time from recognition of a need until the time that need is satisfied? A) production time B) lead time C) cycle time D) schedule

B) lead time *Span of time needed to perform a process. In manufacturing it includes time for order preparation, queuing, processing, moving, receiving & inspecting, and any expected delays.

A set of priority planning techniques for planning component items below the end item level is called: A) master scheduling B) material requirements planning C) capacity planning D) production control E) none of the above

B) material requirements planning (MRP) *MRP is the system used to avoid missing parts. It establishes a schedule (priority plan) showing the components required at each level of assembly and, based on lead times, calculates the time when these components will be needed.

In material requirements planning, the process of placing the exploded requirements in the proper time buckets based on the lead times involved is known as: A) exploding B) offsetting C) netting D) all of the above E) none of the above

B) offsetting *Example: if 50 units of A are required in week 5, the order to assemble the A's must be released in week 4, and 50 B's and 50 C's must available in week 4.

A major input to an MRP system is: A) the production plan B) the master schedule C) the capacity plan D) shop-floor activity planning and control

B) the master schedule

A product tree shows: A) The sequence in which parts go together B) The parts that go into making a product C) The subassemblies used in making the product D) All of the above E) None of the above

D) all of the above

The objectives of materials requirements planning are to: A) issue orders to purchasing and manufacturing B) keep priorities current C) determine requirements D) all of the above E) b and c above

D) all of the above *Determine Requirements: right materials in the right quantities available at the right time to meet the demand for the firm's products. *Keep Priorities Current: The demand for, and supply of, components changes daily. An MRP plan must be able to reorganize priorities to keep plans current.

Which of the following statements is best about released orders? A) a scheduled receipt is a released order B) an open order is a released order C) a planned order release is not a released order D) all of the above are true E) none of the above are true

D) all of the above are true *Scheduled Receipts: are orders placed on manufacturing or on a vendor and represent a commitment to make or buy. *Open Orders: scheduled receipts on the MRP record are open orders on the factory or a vendor. In process but not yet received. *Planned Order Release: are just planned; they have not been released. Not released until the planned order is in the current week.

Which of the following is (are) elements in an MRP system? A) Bill of materials B) Inventory Records C) the ERP-Computer system D) all of these options are correct

D) all of these options are correct

In material requirements planning the process of placing the exploded requirements in the proper time periods, based on the assembly lead times involved, is known as: A) none of the options B) exploding C) netting D) offsetting E) all of the above

D) offsetting *Exploding is the process of multiplying the requirements by the usage quantity and recording the appropriate requirements throughout the product tree. *Netting is the way Material Requirements Planning carries out calculations on a level-by-level basis down through a Bill of Materials

Which statement is correct? A) planned order releases show when the order is needed B) when an order is released, it becomes a planned order C) scheduled receipts show when goods were put into inventory D) all of the above are correct E) none of the above are correct

E) none of the above are correct *Scheduled receipts show the quantities ordered and when they are expected *Planned order releases become scheduled receipts. *Planned order releases represent the time that orders should be released to meet requirements.