Question 1

Capacity requirements planning helps managers reconcile __________ with __________.

Accepted Answer

A)   what is needed; what has been done
B)   what is needed; what is possible
C)   what has been done; who will be doing it
D)   what needs to be done; where it will be done
E)   what has been done; how much what needs to be done will costF) A) and B)
G) A) and C)

Question 2

MRP works best if the inventory items have dependent demand.

Accepted Answer

A) True 
 B)False

Question 3

Safety time is sometimes used in MRP rather than safety stock quantities.

Accepted Answer

A) True 
 B)False

Question 4

Refer to this product tree: 
If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?

Accepted Answer

A)   8
B)   16
C)   136
D)   204
E)   272F) B) and C)
G) D) and E)

Question 5

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n) :

Accepted Answer

A)   assembly time chart.
B)   product structure treE.
C)   MRP II.
D)   pegging.
E)   Gantt chart.F) B) and C)
G) A) and E)

Question 6

In MRP, the gross requirements of a given component part are calculated directly from:

Accepted Answer

A)   net requirements + projected on-hand inventory.
B)   gross requirements of the immediate parent.
C)   planned order releases of the end item.
D)   net requirements of the end item.
E)   planned order releases of the immediate parent.F) A) and D)
G) C) and D)

Question 7

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

Accepted Answer

A)   master production schedule.
B)   bill of materials.
C)   inventory records.
D)   assembly time chart.
E)   net requirements chart.F) B) and E)
G) A) and B)

Question 8

MRP output reports are divided into two main groups, daily and weekly.

Accepted Answer

A) True 
 B)False

Question 9

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:

Accepted Answer

A)   master schedulE.
B)   bill of materials.
C)   inventory records.
D)   assembly time chart.
E)   net requirements chart.F) B) and C)
G) None of the above

Question 10

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Accepted Answer

A)   pegging
B)   safety stock
C)   increased order sizes
D)   safety time
E)   low-level codingF) A) and D)
G) D) and E)

Question 11

The output of MRP is:

Accepted Answer

A)   gross requirements.
B)   net requirements.
C)   a schedule of planned orders for all parts and end items.
D)   inventory reorder points.
E)   economic order quantities and reorder points.F) B) and E)
G) B) and D)

Question 12

In a master schedule, the planning horizon is often separated into a series of time periods called:

Accepted Answer

A)   pegging.
B)   lead times.
C)   stacked lead times.
D)   time buckets.
E)   firm, fixed, and frozen.F) B) and C)
G) C) and D)

Question 13

The _________ of ERP makes it valuable as a strategic planning tool.

Accepted Answer

A)   Internet base
B)   rapid batch capability
C)   employee focus
D)   real-time aspect
E)   database structureF) C) and D)
G) A) and C)

Question 14

Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt?

Accepted Answer

A)   60 units
B)   120 units
C)   180 units
D)   cannot be determined
E)   none of the choicesF) A) and B)
G) A) and C)

Question 15

An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

Accepted Answer

A) True 
 B)False

Question 16

Refer to this product tree: 
If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed?

Accepted Answer

A)   48
B)   144
C)   192
D)   212
E)   272F) A) and C)
G) B) and C)

Question 17

Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods (such as two or three) that extend beyond the orders already received for those periods.

Accepted Answer

A) True 
 B)False

Question 18

The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

Accepted Answer

A) True 
 B)False

Question 19

Which of these items would be most likely to have dependent demand?

Accepted Answer

A)   computer chips
B)   potato chips
C)   poker chips
D)   chocolate chip cookies
E)   wood chippersF) C) and D)
G) A) and B)

Question 20

Which of the following represents an attempt to balance the benefits of stability in the production plan against the benefits of responding quickly to new orders?

Accepted Answer

A)   safety stock
B)   safety time
C)   bills of material
D)   time fences
E)   fixed-period lot sizingF) D) and E)
G) C) and D)

Exam 17: MRP and ERP

Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt?

Correct AnswerverifiedShow Answer

Refer to this product tree: If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed?

Correct AnswerverifiedShow Answer

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:

Correct AnswerverifiedShow Answer

Refer to this product tree: If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?

Correct AnswerverifiedShow Answer

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n) :

Correct AnswerverifiedShow Answer

The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

Correct AnswerverifiedShow Answer

In a master schedule, the planning horizon is often separated into a series of time periods called:

Correct AnswerverifiedShow Answer

Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods (such as two or three) that extend beyond the orders already received for those periods.

Correct AnswerverifiedShow Answer

Capacity requirements planning helps managers reconcile __________ with __________.

Correct AnswerverifiedShow Answer

The _________ of ERP makes it valuable as a strategic planning tool.

Correct AnswerverifiedShow Answer

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

Correct AnswerverifiedShow Answer

MRP output reports are divided into two main groups, daily and weekly.

Correct AnswerverifiedShow Answer

An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

Correct AnswerverifiedShow Answer

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Correct AnswerverifiedShow Answer

MRP works best if the inventory items have dependent demand.

Correct AnswerverifiedShow Answer

In MRP, the gross requirements of a given component part are calculated directly from:

Correct AnswerverifiedShow Answer

Which of the following represents an attempt to balance the benefits of stability in the production plan against the benefits of responding quickly to new orders?

Correct AnswerverifiedShow Answer

Which of these items would be most likely to have dependent demand?

Correct AnswerverifiedShow Answer

The output of MRP is:

Correct AnswerverifiedShow Answer

Safety time is sometimes used in MRP rather than safety stock quantities.

Correct AnswerverifiedShow Answer

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Capacity requirements planning helps managers reconcile with .

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